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HMRC internal manual

Double Taxation Relief Manual

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HM Revenue & Customs
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Gibraltar: Agreements

There is no double taxation agreement between Gibraltar and the United Kingdom.

Gibraltar and the United Kingdom have entered into an Agreement on the Taxation of Savings Income (SI 2006/1453), which came into force on 1 April 2006.

This provides for Gibraltar to levy a withholding tax on payments of interest to United Kingdom residents during a transitional period. The rate is 15 per cent until 30 June 2008, 20 per cent for the following three years and 35 per cent thereafter.

The transitional period terminates on an as yet unspecified date, which will be determined in accordance with Article 10(2) of the Council Directive 2003/48/EC.

When the transitional period ends, Gibraltar will no longer apply a withholding tax to payments of interest and instead adopt the automatic exchange of information provisions in Chapter II of the Directive.

The above agreement does provide for some exchange of information but a full tax information exchange agreement (TIEA) with Gibraltar entered into force on 15 December 2010 and has effect for criminal tax matters from 15 December 2010 and for other matters from 6 April 2011.

Details as to what information can be exchanged can be found in the agreement itself. If using the HMRC Intranet, the agreement can be viewed through the “New treaties/protocols in force” link on the sidebar, following the TIEAs link on the subsequent sidebar. On the HMRC web-site, searching for “TIEAs in force” will provide a link to the agreements page.