The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Faroes) Order 2007

EXPLANATORY NOTE

(This note is not part of the Order)

An agreement dealing with the avoidance of double taxation and fiscal evasion between the United Kingdom and the Faroes (“the Agreement”) is set out in the Schedule to this Order.

Article 1 of the Order provides for its citation.

Article 2 makes a declaration as to the effect and content of arrangements set out in the Agreement contained in Part 1 of the Schedule to the Order and in the Protocol contained in Part 2 of that Schedule and that it is expedient that those arrangements should have effect.

A detailed explanation of the Agreement can be found in the Explanatory Memorandum published with the Agreement and which may be accessed on the web site of the Office of Public Sector Information at http://www.opsi.gov.uk/stat.htm

The Agreement will enter into force on the date of the later of the notifications by each country of the completion of its legislative procedures.

It will take effect in the United Kingdom—

in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April next following the date on which the notice is given; and

in respect of corporation tax, for any financial year beginning on or after 1st April next following the date on which the notice is given.

It will take effect in the Faroes—

in respect of income years beginning on or after 1st January in the calendar year next following the year in which such notice has been given (see Article 29 of the Agreement).

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

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.