The tax agreement between the Isle of Man and the UK has been modernised.

The deal aims to eliminated double taxation on income and on capital gains.

That means the same money should not be taxed in both jurisdictions.

It was ratified at the October 2018 sitting of Tynwald, when the Isle of Man Government informed the UK Government that it had completed its own procedures.

The UK Government has now told the Isle of Man Government that it had completed its own ratification procedures.

The agreement replaces the Double Taxation Agreement that was signed in 1955.

Treasury Minister Alfred Cannan MHK said: ’The new agreement confirms the termination of the island’s oldest double taxation agreement, which was signed in 1955, and brings to effect a modern double taxation agreement based on the OECD model.’

He added: ’This agreement meets the latest international standards and includes a number of new provisions that will provide greater certainty for individuals and businesses, including a tiebreaker provision that will assist those taxpayers who are resident for tax purposes in the Isle of Man and the UK at the same time.’

The text of the agreement can be viewed on the international agreements page of the Treasury’s income tax division’s website.