UK-Libya Tax convention
HMRC have published an explanatory memorandum that brings into effect certain elements of the double taxation convention between the UK and Libya which was signed in November 2008.
The convention follows the approach set out in the OECD’s model double taxation convention. The agreement seeks to avoid double taxation in relation to income tax, corporation tax and capital gains tax in the UK and income tax and ‘Libyan tax’ in Libya.
The convention became effective in the UK from 1 April 2010 for corporation tax purposes and from 6 April 2010 for income tax and capital gains tax purposes and will be effective from 1 January 2011 in Libya.