The Isle of Man and the UK signed new tax agreements yesterday which will have the effect that pensions paid from the UK to residents living in the Isle of Man will be only taxed by the offshore jurisdiction.

The governments have agreed to amend the provisions of the 1955 double taxation agreement by adding provisions on the taxation of income from pensions and a mutual agreement procedure.

In addition, taxpayers will be given new rights under the agreement to ask one government to intervene in order to resolve problems arising from the application of the agreement, the Isle of Man government said in a statement.

An agreement to facilitate the exchange of information relating to taxes between the Isle of Man and the United Kingdom was also signed.