Isle Of Man Renegotiating UK VAT Split
by Jason Gorringe, Lowtax.net, London
11 June, 2015
The Isle of Man's Chief Minister, Allan Bell, has reportedly said that negotiations with the UK Government over the two territories' value-added tax revenue-sharing agreement are close to completion.
Alongside the Isle of Man's 2015 Budget, it was announced that the Isle of Man would be seeking a more certain flow of revenues from the UK Government, after the UK substantially reduced the island's share of pooled indirect tax levies from 2010.
The decision to revise the agreement announced in October 2009 led to a significant revenue gap for the Isle of Man, estimated to be worth GBP100m in 2010, before eventually rising to GBP140m each thereafter.
Bell told IOM Today that the talks towards a more stable deal were restarted after a delay caused by the UK general election and that a deal is likely to be signed off soon.
He told the paper: "We are very [close] to a conclusion of those discussions and I hope we will get the final sign off to this agreement fairly shortly. There is no indication what the final outcome might be. But I'm cautiously optimistic we will get a new agreement which will leave the island no worse off – and will give us stability for the next few years."
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