The UK government has announced the suspension of the 1994 UK-Russia Double Taxation Convention, following Russia’s unilateral decision to halt key provisions of the treaty in August 2023. Despite the UK’s request for Russia to reinstate its treaty commitments, no action has been taken.

As a result, the UK will revoke the legislation implementing the treaty, and from the following dates, UK tax law will apply without reference to the agreement:

  • 6 April 2025 – for Income Tax and Capital Gains Tax
  • 1 April 2025 – for Corporation Tax

The treaty will remain in effect for all tax periods before these dates. Should Russia comply with its obligations in the future, the UK has indicated that the agreement could be reinstated through new legislation.