The Double Taxation Relief and International Tax Enforcement (Luxembourg) Order 2010

Statutory Instruments

2010 No. 237

Taxes

The Double Taxation Relief and International Tax Enforcement (Luxembourg) Order 2010

Made

10th February 2010

At the Court at Buckingham Palace, the 10th day of February 2010

Present,

The Queen’s Most Excellent Majesty in Council

A draft of this Order was laid before the House of Commons in accordance with section 788(10) of the Income and Corporation Taxes Act 1988(1) and section 173(7) of the Finance Act 2006(2) and approved by a resolution of that House.

Accordingly, Her Majesty, in exercise of the powers conferred by section 788(1) of the Income and Corporation Taxes Act 1988 and section 173(1) of the Finance Act 2006, by and with the advice of Her Privy Council, orders as follows—

Citation

1.  This Order may be cited as the Double Taxation Relief and International Tax Enforcement (Luxembourg) Order 2010.

Double taxation and international tax enforcement arrangements to have effect

2.  It is declared that—

(a) The arrangements specified in the Protocol set out in Schedule 1 to this Order and in the Exchange of Notes set out in Schedule 2, which vary the arrangements set out in the Convention between the United Kingdom of Great Britain and Northern Ireland and the Grand Duchy of Luxembourg for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital, have been made with the Grand Duchy of Luxembourg;

(b) The arrangements have been made with a view to affording relief from double taxation in relation to income tax, corporation tax, capital gains tax, petroleum revenue tax and taxes of a similar character imposed by the laws of Luxembourg and for the purpose of assisting international tax enforcement;

(c) It is expedient that those arrangements should have effect.

Judith Simpson

Clerk of the Privy Council

SCHEDULE 1

SCHEDULE 2

EXPLANATORY NOTE

(This note is not part of the Order)

Schedule 1 to this Order contains a Protocol amending the Convention between the United Kingdom of Great Britain and Northern Ireland and the Grand Duchy of Luxembourg for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital, which was scheduled to the Double Taxation Relief (Taxes on Income) (Luxembourg) Order 1968 (S.I. 1968/1100).

Article 1 of this Order provides for its citation.

Article 2 makes a declaration as to the effect and content of the arrangements set out in the Protocol and the Exchange of Notes and provides that it is expedient that those arrangements should have effect.

A detailed explanation of the Protocol can be found in the Explanatory Memorandum published with this Order and which may be seen on the website of the Office of Public Sector Information at http://www.opsi.gov.uk/stat.htm.

The Protocol will enter into force on the date of the later of the notifications by each party of the completion of its legislative procedures. It will have effect with regard to tax years beginning on or after January 1^st next following the date of entry into force of the Protocol.

The Exchange of Notes set out in Schedule 2 to this Order clarifies the intended interpretation of particular aspects of the Protocol.

The date of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.

A full and final Impact Assessment has not been produced for this instrument as a negligible impact on the private or voluntary sectors is foreseen.

(1)

1988 c.1: section 788 was extended by section 277 of the Taxation of Chargeable Gains Act 1992 (c.12) and by section 194 of the Finance Act 1993 (c.34). It has also been relevantly amended as follows. Subsection (1) was amended by section 88(1) of the Finance Act 2002 (c.23). Subsection (2) was substituted by section 176 of the Finance Act 2006 (c.25).

(2)

2006 c.25.