A new tax agreement eliminating double taxation has come into force.

The agreement is between the Manx Government, the United Kingdom and Northern Ireland.

It sees the elimination of double taxation with respect to taxes on income and on capital gains and the prevention of tax evasion and avoidance.

Treasury Minister Alfred Cannan says: “The new agreement confirms the termination of the Island’s oldest double taxation agreement, which was signed in 1955, and brings to effect a modern double taxation agreement based on the OECD Model.

“This agreement meets the latest international standards and includes a number of new provisions that will provide greater certainty for individuals and businesses, including a tiebreaker provision that will assist those taxpayers who are resident for tax purposes in the Isle of Man and the UK at the same time.”