Holiday Lettings news - UK to sign four new double taxation treaties

UK to sign four new double taxation treaties

The UK is to sign four new double taxation treaties next year. The government is also negotiating with several other countries to establish new information sharing agreements.

HM Revenue and Customs (HMRC) is preparing to sign new double taxation treaties with the Netherlands, Thailand, Libya and Ethiopia, reports Overseas Property Professional (OPP). The new treaties would come into effect as of March 31st 2009.

Double taxation treaties aim to help UK residents avoid being taxed in two countries when income, such as rental income, and capital gains tax arise in a foreign country. Such treaties are particularly of interest to international second home owners and companies.

"The UK has a comprehensive network of bilateral double taxation conventions and we are committed to maintaining and strengthening this network. These agreements help UK business and investors to remain competitive by providing them with a measure of certainty and stability in their tax affairs," said financial secretary Jane Kennedy.

As well as the four announced new treaties, work on tax information agreements with Brazil, Jersey, Guernsey, the Isle of Man and the British Virgin Islands is expected to be completed by the end of March 2009.

The UK has double taxation treaties with over 100 countries and the last two years have seen the HMRC sign ones with:

• Slovenia
• France
• Macedonia
• The Faroe Islands
• Saudi Arabia
• Moldova

Furthermore, protocols to double taxation treaties have been signed with Switzerland and New Zealand, and a tax information agreement with Bermuda.

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