The Double Taxation Relief and International Tax Enforcement (Luxembourg) Order 2022

Statutory Instruments

2022 No. 1055

Capital Gains Tax

Corporation Tax

Income Tax

The Double Taxation Relief and International Tax Enforcement (Luxembourg) Order 2022

Made

12th October 2022

At Buckingham Palace, the 12th day of October 2022

Present,

The King’s Most Excellent Majesty in Council

A draft of this Order was laid before the House of Commons in accordance with section 5(2) of the Taxation (International and Other Provisions) Act 2010(1) and section 173(7) of the Finance Act 2006(2) and approved by resolution of that House.

Accordingly, His Majesty, in exercising the powers conferred upon Him by section 2 of the Taxation (International and Other Provisions) Act 2010 and section 173(1) to (3) of the Finance Act 2006, by and with the advice of His Privy Council, orders as follows—

Citation

1.  This Order may be cited as the Double Taxation Relief and International Tax Enforcement (Luxembourg) Order 2022.

Double taxation and international tax enforcement arrangements to have effect

2.  It is declared that—

(a) the arrangements specified in the Convention and Protocol set out in the Schedule to this Order, have been made with the Grand Duchy of Luxembourg;

(b) those arrangements have been made with a view to affording relief from double taxation in relation to capital gains tax, corporation tax, income tax and taxes of a similar character imposed by the laws of the Grand Duchy of Luxembourg, and relate to international tax enforcement; and

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

Richard Tilbrook

Clerk of the Privy Council

Article 2

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to this Order contains a Convention and Protocol (“the Arrangements”) between the United Kingdom and the Grand Duchy of Luxembourg in relation to the elimination of double taxation with respect to taxes on income and on capital, the prevention of tax evasion and avoidance, and assisting international tax enforcement. This Order brings the Arrangements into effect.

The Arrangements replace the Convention, in relation to taxes with effect on and after the date the Arrangements take effect, between the United Kingdom and the Grand Duchy of Luxembourg signed at London on 24th May 1967, as amended by the first Protocol signed at London on 18th July 1978, the second Protocol signed at London on 28th January 1983, and the third Protocol and accompanying exchange of letters signed at London on 2nd July 2009.

The Arrangements aim to eliminate the double taxation of income and gains arising in one country and paid to residents of the other country. This is done by allocating the taxing rights that each country has under its domestic law over the same income and gains, and by providing relief from double taxation. There are also specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement.

In this Order, article 1 provides for citation and article 2 makes a declaration as to the effect and content of the Arrangements.

The Arrangements will enter into force on the date of the later of the notifications by each country of the completion of its legislative procedures and will take effect in each territory in accordance with paragraphs 1 and 3 of Article 29 of the Convention.

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

A Tax Information and Impact Note has not been produced for the Order as it gives effect to a double taxation agreement. Double taxation agreements impose no obligations on taxpayers, rather they seek to eliminate double taxation and fiscal evasion.

(1)

2010 c. 8.

(2)

2006 c. 25.