Syllabus A6. Value Added Tax A6b. Principal sources of revenue law and practice

A6b. The interaction of the UK tax system with other tax jurisdictions

Syllabus A6b)

Principal sources of revenue law and practice

This is where income could get taxed under 2 different systems

Double Taxation Agreements

These are agreements between countries over how certain items are taxed - and take precedence over UK law

They either:

  • Exempt some overseas income from UK tax or

  • Provide tax relief if it has been taxed in 2 countries

EU Influences

The EU would like to remove differences between countries policies as these can cause distortions and be barriers to trade for some countries

EU countries do NOT have to align their tax policies - but can jointly enact laws called Directives

  • One example is the VAT directive

    However the rates of VAT are not aligned...