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New taxation treaties for UK
The UK is to sign four new double taxation treaties next year, and the government is also negotiating with several other countries to establish new information sharing agreements.
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.
HM Revenue and Customs (HMRC) is currently preparing to sign new double taxation treaties with the Netherlands, Thailand, Libya and Ethiopia. The new treaties would come into effect as of March 31 next year.
HMRC Financial Secretary Jane Kennedy, said, "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."
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 over the last two years, the HMRC has signed ones with Slovenia, France, Macedonia, The Faroe Islands, Saudi Arabia and Moldova.
According to the Inland Revenue, there are more than 1,500 double taxation treaties worldwide and Britain has the largest network of treaties, covering well over 100 countries.
A spokesman for the Inland Revenue said: “Individuals should always seek advice on their individual circumstances as this is a very complex area.”
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