Explanatory note

The Schedule to this Order contains the Convention between the United Kingdom and Northern Ireland and the Great Socialist People’s Libyan Arab Jamahiriya for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains.

Article 1 of this Order provides for its citation.

Article 2 makes a declaration as to the effect and content of the arrangements set out in the Convention and provides that it is expedient that those arrangements should have effect.

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

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

In respect of the provisions for the avoidance of double taxation, the Convention will have effect as follows—

• 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 Convention enters into force;

  • in respect of corporation tax, for any financial year beginning on or after 1st April next following the date on which the Convention enters into force;

• in Libya: for any calendar year or financial year, as the case may be, subject to the discretion of the Libyan Tax Department, beginning on or after 1st January next following the date on which the Convention enters into force.

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

No full and final Impact Assessment has been produced for this instrument because it is considered that its impact on the private and voluntary sectors will be negligible.