The Isle of Man Treasury has announced that, following extensive negotiations, the Isle of Man and the United Kingdom have agreed a revision of the formula that governs the sharing of joint indirect tax revenues under the 1979 Customs & Excise Agreement.
Minister for the Treasury, Hon. Eddie Teare and the Financial Secretary to the Treasury of the United Kingdom, David Gauke, signed the new arrangements in London on 2 March.
Minister Teare said: 'The new formula, which is largely based around final expenditure by households, is intended to give the Isle of Man the revenue due to it from the consumption of goods and services in the Island whether purchased on or off the Island, including via the internet.'
Both the Isle of Man and United Kingdom Governments recognise the good working relationship that has developed during the revenue sharing negotiations and believe that the new formula provides a stable and secure basis for the long term future of the Customs and Excise Agreement between the United Kingdom and the Isle of Man.
A separate stand-alone document describing how the new Final Expenditure Revenue Sharing Arrangement (FERSA) will work in practice is to be produced by the Isle of Man Treasury, which once agreed with HM Treasury will be made public.