A NEW tax arrangement with the UK could net Guernsey an extra £3m. a year.

Chief Minister Lyndon Trott (pictured) was in London yesterday to sign off a package of measures that include modifying existing double taxation rules.

However, the signing of the agreement has been reported somewhat differently by the Times newspaper.

Its economics correspondent, Grainne Gilmore, wrote: ‘The tax haven of Guernsey threw open its doors to British authorities yesterday as HM Revenue and Customs stepped up its efforts to track down evaders.’

The agreement means that in the near future, pensions, other than those for government service, will be taxed in the jurisdiction where the pensioner lives and not where the pension is paid from.

‘Not only is this good for those people with pensions, both now and in the future, but it also means that Guernsey’s tax collections benefit, meaning that revenue will increase as well,’ said Deputy Trott.