Chief Minister Howard Quayle and Mel Stride MP, Financial Secretary to the Treasury and Paymaster General in the UK, this week signed the agreement between the UK and Manx governments for the elimination of double taxation with respect to taxes on income and on capital gains and the prevention of tax evasion and avoidance.

The agreement replaces the double taxation agreement that was signed in 1955.

The agreement is based on the latest OECD model wording and the Manx government says it includes ’provisions that reflect the Isle of Man’s commitment to the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS)’.

Mr Quayle said: ’In signing this agreement we are delivering on a commitment made in March 2016 to renegotiate our old agreement with the UK.

’This new agreement will provide clarity to Isle of Man residents with UK income. It is a modern agreement based on the OECD standard, which fulfils our commitment to the BEPS minimum standard in respect of our most significant partner jurisdiction and continues our longstanding policy of cooperating with the UK to eliminate double taxation and to counter tax avoidance and evasion.’

The agreement will be presented to Tynwald after the summer recess and subject to it being ratified by Tynwald and by the UK, it is expected that the agreement will be effective during 2019.

Similar agreements have been made with the Channel Islands, whose representatives posed in a photo with Mr Quayle and Mr Stride.