Taxation (International and Other Provisions) Act 2010 section 229

Modifications of agreement for double taxation purposes

Section 229 establishes that mutual agreements made under double taxation arrangements take precedence over advance pricing agreements, and requires HMRC to modify any conflicting advance pricing agreement accordingly.

• Where a mutual agreement made under a double taxation arrangement conflicts with an advance pricing agreement, the advance pricing agreement must give way.
• HMRC must ensure the advance pricing agreement is modified as necessary to give effect to the mutual agreement.
• HMRC may make such modifications using powers within the advance pricing agreement itself or by other means available to them.
• Double taxation arrangements are those made between the UK and other territories under section 2(1) of the Act, and mutual agreements are those envisaged under Article 25 of the OECD Model Tax Convention.