New double taxation treaties between the UK and five other states are planned before 31 March 2004. The Inland Revenue announced a schedule of work which includes treaties with Australia, Chile, Croatia, France and Slovenia.

It also plans to complete work on protocols to the existing treaties with Belgium, Italy and New Zealand. Negotiations are in progress with Bahrain, Botswana, Georgia, Germany, Namibia and Saudi Arabia.

In addition, the Revenue aims to achieve new or updated treaties with Hong Kong SAR, Iran, Luxembourg, Poland, Serbia and Montenegro and Thailand.

A treaty was signed with the US on 24 July 2001 and a protocol was signed on 19 July 2002. Both were ratified on 31 March 2003 and the provisions take effect in the UK from 1 May 2003 (for tax withheld at source), 6 April 2003 (for income tax and capital gains tax), 1 April 2003 (for corporation tax) and 1 January 2004 (for petroleum revenue tax). In the US, the provisions apply from 1 May 2003 (for tax withheld at source) and 1 January 2004 (for other taxes).

A protocol to the UK/Canada treaty was signed in May, one to the UK/Lithuania agreement (DTA) was signed in Vilnius on 21 May 2002 to bring the DTA into effect in the UK from 1 April 2002 (for corporation tax) and from 6 April 2002 (for income tax and capital gains tax) and in Lithuania from 1 January 2002.

A protocol to the UK/Mauritius DTA was signed in Port Louis on 27 March 2003. The new DTA with South Africa was signed in London on 4 July 2002 and entered into force on 17 December 2002. The provisions of the DTA apply in the UK from 1 April 2003 (for corporation tax) and from 6 April 2003 (for income tax and capital gains tax) and in South Africa from 1 January 2003.

The DTA in relation to Taiwan was signed in London on 8 April 2002 and entered into force on 23 December 2002. The provisions of the DTA apply in the UK from 1 April 2003 (for corporation tax) and from 6 April 2003 (for income tax and capital gains tax) and in Taiwan from 1 January 2003.