New tax agreements with the British Virgin Islands

A tax information exchange agreement and an agreement for the avoidance of double taxation of individuals, between the governments of the United Kingdom and the British Virgin Islands, were signed in London on 29 October 2008 by Gillian Merron MP, Parliamentary Under-Secretary of State at the Foreign & Commonwealth Office and the Hon Ralph O’Neal OBE, Premier of the BVI.

The text will in due course be laid as a Schedule to a draft Order in Council for consideration by the House of Commons. It will then also be available from the Stationery Office.

Welcoming signature, the Financial Secretary to the Treasury, Stephen Timms MP said: "These agreements build on and enhance the effective co-operation that already exists between the UK and the BVI, notably in the area of mutual legal assistance in criminal matters. I particularly welcome the new agreement on tax information exchange, which demonstrates the BVI Government's willingness to implement OECD principles of transparency and effective exchange of information in relation to both criminal and civil tax matters. The BVI’s leadership in this important area of global tax policy will strengthen its reputation for good governance in financial matters. The agreement on the avoidance of double taxation will also benefit individuals resident in both jurisdictions. "

The agreements will enter into force as soon as both governments have completed the legislative procedures needed to give them effect.

Notes for editors

  1. Tax information exchange arrangements (TIEAs) allow governments to enforce their domestic tax laws by exchanging, on request, information relevant to a tax matter covered by the arrangements. The text of this TIEA broadly follows the OECD Model Agreement on Exchange of Information on Tax Matters. This is the third comprehensive TIEA signed by the Government of the United Kingdom, having previously signed TIEAs with Bermuda and the Isle of Man. The BVI has previously signed TIEAs with the United States and Australia.
  2. Double Taxation Agreements aim to eliminate the double taxation of income arising in one territory and paid to residents of another. They do this by dividing the taxing rights that each territory has under its domestic law over the same income. More generally, they benefit the taxpayer by ensuring certainty of treatment and, as far as possible, by reducing compliance burdens. There are more than 1,300 such agreements world-wide – the United Kingdom has one of the largest networks covering more than 100 countries and territories. The new agreement with the BVI covers individuals and provides for tax benefits to pensioners, students and government servants.

Issued by HM Revenue & Customs Press Office

Press enquiries only please contact:
Tel: 020 7147 0798 / 2328
Out of hours
Tel: 07860 359544

Tax Information Exchange Agreements (TIEAs) - signed/not in force