Double Taxation Treaties are conventions between two countries that aim to eliminate the double taxation of income, or gains, arising in one territory and paid to residents of another territory. They work by dividing the tax rights each country claims through its domestic laws over the same income and gains. Over 1,300 Double Taxation Conventions exist world-wide. The UK has one of the largest networks with more than 100.
- Q.
- Will the arrangements set out in a double tax treaty override the standard legislation in the UK jurisdiction?
- A.
- Yes. The UK's double tax conventions will take precedence in the unlikely circumstance that a conflict arises in the drafting of the legislation.