Taxation (International and Other Provisions) Act 2010 Schedule 9 paragraph 12

Effect in relation to capital gains tax of arrangements given effect before introduction of that tax

Paragraph 12 of Schedule 9 ensures that older double taxation agreements made before capital gains tax existed can still apply to capital gains tax.

• This provision deals with double taxation arrangements made by Order in Council under the Income Tax Act 1952 (section 347).
• It applies only to arrangements made before 5 August 1965, the date on which capital gains tax was introduced in the United Kingdom.
• Where those older arrangements included any form of relief from United Kingdom tax on capital gains — regardless of the specific wording used — that relief is treated as applying to capital gains tax.
• This ensures continuity so that treaty relief negotiated before capital gains tax existed is not rendered ineffective simply because the tax did not formally exist at the time the arrangements were agreed.