Updated UK-Guernsey tax treaty enters into force

A new comprehensive double tax treaty and protocol signed by the UK and Guernsey has entered into force, the UK government announced today.

The agreement, signed in London on July 2, 2018, entered into force on January 7, the government said. The agreement takes effect in both countries for taxes withheld at source, for amounts paid or credited on or after March 1.

The new treaty takes effect in Guernsey for income tax for any year of assessment beginning on or after January 1, 2020.

In the UK, the agreement takes effect for income tax for any year of assessment beginning on or after April 6, 2019. For corporation tax, it takes effect on  April 1, 2019.