There are a range of measures that help to combat tax avoidance, through British Overseas Territories and more generally. These include the tax avoidance disclosure regime, under which tax avoidance schemes must be disclosed to HM Revenue and Customs, in accordance with strict rules that enable the users of schemes to be identified.
In addition, the UK is negotiating tax information exchange agreements with a number of Overseas Territories, which should increase transparency and ensure that HMRC is able to obtain information on the income of UK tax residents arising from accounts and activities in those territories. The UK is also encouraging the Overseas Territories to conclude similar agreements with other countries, within the framework of the OECD Harmful Tax Practices initiative.
The Caribbean Overseas Territories have all concluded savings tax agreements with EU member states within the framework of the Savings Directive, introduced in 2005. This is specifically concerned with tackling tax evasion and provides for the exchange of information, or the transfer of withholding tax, on the savings accounts of UK and other EU residents in those territories.