Isle of Man first to 'set in stone' UK tax agreement

The Isle of Man has become the first British crown dependency to sign a tax information-sharing agreement with the UK to combat tax evasion.

Under the accord, the island and the UK will automatically exchange a wide range of information on residents' tax issues, on a reciprocal basis.

It has been signed by Manx Chief Minister, Allan Bell and HM Treasury Exchequer Secretary, David Gauke.

The UK is looking to agree similar deals with both Guernsey and Jersey.

It follows the introduction of the Foreign Account Tax Compliance Act (FATCA) in the United States.

'Clear commitment'

FATCA was implemented by the US government to clamp down on the growing number of US citizens who were discovered trying to evade tax by holding bank and wealth accounts overseas.

Mr Bell said: "In signing this historic agreement with the United Kingdom, we are underlining the message to our neighbours and the wider world that our island is a responsible centre for top quality international business.

"The Isle of Man was the first to strike this agreement with the UK and we are now the first to sign, demonstrating the clear commitment of both countries to the development of a new global standard in automatic exchange."

The signed agreement will see the two governments adopt new enhanced reciprocal tax information sharing arrangements, under which they will automatically exchange information on tax residents on an annual basis.