UK/IOM Tax agreements
A new Tax Information Exchange agreement between the UK and the Isle of Man entered into force on 2 April 2009. The agreement broadly follows the OECD model and recognises the importance of the exchange of information to help combat international money laundering, counter-terrorist financing and other financial crimes.
In addition the 1955 Double Taxation arrangement between the UK and the Isle of Man has been updated. The arrangement seeks to avoid double taxation in relation to income tax, corporation tax, capital gains tax and inheritance tax in the UK and taxes on income or profit in the Isle of Man. The main changes are in relation to taxation of pension income and transfer pricing.
The Double Taxation arrangement will take effect in the UK from 6 April 2009 for Income Tax and from 1 April 2010 in relation to corporation tax.
In the Isle of Man the arrangement is effective from 6 April 2009.