UK- Guernsey Tax agreement
A new tax information exchange agreement between the Governments of the UK and Guernsey entered force on 27 November 2009. The provisions of the Arrangement will apply from 6 April 2010 for income tax (1 April 2010 for Corporation Tax) in the UK and from 6 April 2010 in Guernsey.
The agreement which was signed on 20 January 2009 covers two main areas.
Firstly, an agreement to exchange information relating to tax matters and to prosecutions of criminal tax matters. The agreement covers income tax, corporation tax, capital gains tax, inheritance tax and VAT in the UK. In Guernsey the agreement covers income tax and dwellings profit tax.
Secondly the agreement amends existing rules introduced in 1952 for the avoidance of double taxation with respects to taxes on income. The main changes relate to pensions and procedural changes.