The UK double taxation agreement with Ireland is a significant development in the tax policies of both countries. This agreement, which was signed on 21st March 2018, aims to eliminate double taxation on individuals and companies that operate between the UK and Ireland.

Double taxation can occur when a person or company pays tax on the same income or profit twice, as a result of taxable activities in both countries. This can happen to individuals who live in one country but work in another, or to companies that have subsidiaries in both countries.

The UK double taxation agreement with Ireland seeks to mitigate this by setting out rules on how taxes are to be levied, and which country has the right to tax certain types of income and profit. This will reduce the administrative burden on taxpayers and enhance cross-border trade between the two countries.

The agreement applies to a wide range of taxes, including income tax, corporation tax, and capital gains tax. It also covers pensions, inheritance tax, and other income streams such as rental income.

Under this agreement, residents of one country will not be taxed on the same income in the other country, as long as they meet certain criteria. For example, in the case of a UK resident who works in Ireland, their employer will deduct Irish income tax from their salary, but they will not be liable to pay UK income tax on the same income. Similarly, a company that operates in both countries will be taxed in the country where the income is generated, rather than being taxed twice on the same income.

The agreement also provides for the exchange of tax information between the two countries, which will help to prevent tax evasion and support the fight against financial crime.

Overall, the UK double taxation agreement with Ireland is a positive development for both countries, as it will reduce the tax burden on businesses and individuals operating between the two countries and enhance trade and investment. As an SEO expert, it is important to be aware of this development as it will have implications for keywords and search terms related to taxation and cross-border trade between the UK and Ireland.