§ Mr. AshbyTo ask the Chancellor of the Exchequer whether a new double taxation convention has been negotiated with the Netherlands Antilles; and if he will make a statement.
§ Mr. Norman LamontAs foreshadowed in the Inland Revenue press release of 24 June 1988, the United Kingdom Government gave notice of termination of the existing convention by 30 June 1988 in accordance with the provisions of that convention. The existing convention will, therefore, cease to have effect in the United Kingdom from April 1989. Discussions are continuing at official level about a new double taxation convention. Whatever the outcome of these discussions, the Government propose, in accordance with the undertaking given in the press release, to introduce provisions for this year's Finance Bill to preserve the existing exemption from tax of interest paid from the United Kingdom to the Netherlands Antilles to fund the payment of interest on Eurobonds issued by Netherlands Antilles finance subsidiaries before 26 July 1984. These provisions will apply to interest payments paid from the United Kingdom on or after 1 April 1989.