UK And US Move Towards Ratification Of New Double Tax Agreement

by Amanda Banks, Tax-News.com, London

24 July 2002

Following UK Paymaster General, Dawn Primarolo's progress report last week on double taxation agreements (DTAs) currently under discussion, the Inland Revenue announced that the new comprehensive US-UK tax treaty (signed on 24 July 2001), and a Protocol to the Convention (signed in Washington on 19 July this year) were laid before the House of Commons on Monday as Schedule to a draft Order in Council.

Ms Primarolo, who has previously flagged up the ratification of the DTA between the United States and the United Kingdom as one of the government's main priorities in this area over the coming year, welcomed the fact that the draft statutory instrument has now been laid before Parliament, observing on Monday that:

'The way is now clear for the UK and the US to ratify the new double tax convention. Once it has entered into force, British business will be able to enjoy the many benefits it provides.'

The current DTA between the two countries has been in place since 1975, but it was decided in 1998 that the agreement needed to be updated, in view of the changing international climate with regard to trade and investment.

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