Guernsey/UK new double taxation arrangement

crandall

I understand that Guernsey and HMRC have changed the above agreement whereby pensions from Guernsey paid to UK residents will be taxed in the UK (formerly these were taxed in Guernsey and repaid under the double taxation agreement). Is this true and if so, is there a date for commencement? Thanks.

trevormax

According to many of the sites I have looked at, the new agreement will enter into force on the 6th April after both governments have completed the legislative procedures needed to give it effect. My guess would be 6th April 2010 but I am not and expert on how long it takes to complete the legislative procedures.

The part which I think would apply to your question would be this:

4. After paragraph 5 of the 1952 Arrangement there shall be inserted the following new paragraph:
“5A. Subject to the provisions of paragraph 6, pensions and other similar remuneration paid to an individual who is a resident of one of the territories shall be taxable only in that territory.”

So it does seem like you will be taxed in the UK if that is where you live.

crandall

thank you trevormax - nice to have confirmation that this is true. It's quite difficult hearing about changes like this as I suppose ex Guernsey residents are in a minority. I suppose they will get around to informing me in due course! :T