Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
Updated
, see all updates

Guernsey: double taxation agreement, Article 9: Elimination of double taxation: Article 9A as inserted by the further agreement SI94 No 3209 (see DT8600)

9–(1)Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom, Guernsey tax payable, whether directly or by deduction, in respect of income from sources within Guernsey other than dividends or debenture interest payable by a company resident in Guernsey shall be allowed as a credit against any United Kingdom tax payable in respect of that income.

(2) Subject to such provisions (which shall not affect the general principle hereof) as may be enacted in Guernsey regarding the allowance as a credit against Guernsey tax of tax payable in a territory outside Guernsey, United Kingdom tax payable, whether directly or by deduction, in respect of income from sources within the United Kingdom other than dividends or debenture interest payable by a company resident in the United Kingdom shall be allowed as a credit against any Guernsey tax payable in respect of that income.

(3) Where no credit is allowable under sub-paragraph (1) or sub-paragraph (2) of this paragraph in respect of tax on income subject to both Guernsey tax and United Kingdom tax, such relief from United Kingdom tax shall be allowed in respect of the double taxation as would have been allowed under the law in force in the United Kingdom if the present arrangement had not been made.

Provided that in a case to which the proviso to Section 24 of the United Kingdom Finance Act, 1920(b), applies, the relief allowable under this sub-paragraph shall be left out of account in the computations of tax to be made under the said proviso.

(4) For the purposes of this paragraph profits or remuneration for personal (including professional) services performed in one of the territories shall be deemed to be income from sources within that territory, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory.

(5) Where Guernsey income tax is payable for a year for which this Arrangement has effect in respect of any income in respect of which United Kingdom income tax is payable for a year prior to the year beginning on the 6th April, 1951, then in the case of a person resident in Guernsey, the Guernsey income tax shall for the purposes of sub-paragraph (2) of this paragraph be deemed to be reduced by the amount of any relief allowable in respect thereof under the provisions of Section 27 of the United Kingdom Finance Act, 1920(b), or Section 36 of the United Kingdom Finance Act, 1950(c).

9A Notwithstanding the preceding provisions of this Arrangement, any person who is assessed in accordance with, or is exempt from assessment by virtue of, the provisions of -

(a) The Income Tax (Exempt Bodies) (Guernsey) Ordinances, 1989 and 1992, or

(b) The Income Tax (International Bodies) (Guernsey) Law, 1993,

in respect of any income or profits shall not be entitled under this Arrangement to any relief or exemption from United Kingdom tax which is computed by reference to that income or those profits, unless that person is assessed under those provisions on the whole of that income or those profits at a rate which is not less than the standard rate under section 36 of the Income Tax (Guernsey) Law, 1975, as amended.