The UK has signed further Intergovernmental Agreements in the last few months intended to improve international tax compliance and tackle tax evasion, this included agreements with the overseas territories of Bermuda, Montserrat, the Turks and Caicos Islands and the British Virgin Islands. In 2013, all the Crown Dependencies (Isle of Man, Guernsey and Jersey) and several British Overseas Territories agreed to enter into automatic tax information exchange agreements with the UK. An ‘Intergovernmental Agreement to Improve International Tax Compliance’ was also signed with Gibraltar on 21 November 2013.

It should be noted that the four agreements with the Isle of Man, Guernsey, Jersey and Gibraltar are reciprocal, meaning that UK Financial Institutions will have to provide data on financial accounts held by residents of these territories.

The UK will be bringing in regulations to implement these arrangements in 2014. Selected areas of draft guidance have already been published to give clarity on key differences in scope between the regulations for reporting on US account holders under the Foreign Account Tax Compliance Act, and account holders from these territories. Further guidance is expected soon.