EU Savings Tax Directive Does Not Apply Between UK And Gibraltar

by Jason Gorringe, Tax-News.com, London

05 July 2005

The European Savings Tax Directive, which went into effect on July 1, does not at the moment apply between Gibraltar and the United Kingdom, as they are not separate member states of the EU, according to the Gibraltar government.

Following consultation and discussion with the Gibraltar Banker’s Association and the Finance Centre Council, the Gibraltar Government agreed to the issue of the following statement jointly by the Chief Minister of Gibraltar, Peter Caruana, and the UK government's Paymaster General, Dawn Primarollo:

“The Savings Tax Directive, which comes into effect today (July 1), applies to savings income payments made in one Member State to someone resident in another Member State. Accordingly, because the UK and Gibraltar are not separate member states, the Directive does not apply between them.

The UK and Gibraltar Governments are in discussion and working together with a view to agreeing arrangements to close this gap between them as soon as possible during the next few months, on terms that would offer a choice between exchange of information and withholding tax."

Recommended