UK/Isle of Man Double tax convention
The 1955 Double Taxation agreement between the UK and the Isle of Man has been updated and the new Statutory instrument has been ratified in the UK.
The convention is expected to take effect in the UK from 1 April 2010 in relation to corporation tax and from 6 April 2010 in relation to income tax, capital gains tax and inheritance tax. The provisions are expected to apply from 6 April 2010 in the Isle of Man.
The main changes are in relation to taxation of pension income and new measures to prevent tax evasion. The agreement recognises the importance of continuing to exchange information to help combat international money laundering, counter-terrorist financing and other financial crimes.
The agreement 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.