Isle Of Man Strengthens Tax Cooperation With UK

by Phillip Morton, Investors Offshore.com

30 September 2008

The Isle of Man has announced this week that it has continued its programme of developing closer economic and taxation co-operation with other countries by concluding agreements with the UK government.

New tax agreements between the Isle of Man and the United Kingdom were signed at a ceremony in Douglas on Monday by the Isle of Man’s Chief Minister, Tony Brown and the United Kingdom’s Minister of State for Constitutional Renewal, Michael Wills.

The governments have agreed to amend the provisions of the 1955 double taxation agreement by adding provisions on the taxation of income from pensions and a mutual agreement procedure.

Once the new provisions are in force, many pensions paid from the United Kingdom to people living in the Isle of Man will be taxed in the Isle of Man only.

In addition taxpayers will be given new rights under the agreement to ask one government to intervene in order to resolve problems arising from the application of the agreement.

An agreement to facilitate the exchange of information relating to taxes between the Isle of Man and the United Kingdom was also signed.

After the signing of the agreements, Chief Minister Brown commented:

“The Isle of Man has taken a leading part in driving forward the development of international tax agreements, working closely with the OECD and its members, so I am pleased we have been able to conclude this agreement with the United Kingdom. It is another demonstration of the Isle of Man’s continuing commitment to taking an active and positive role in the global economy”.

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