Taxation is a devolved competence in the UK overseas territories under the terms of their constitutions and UK tax legislation does not apply to them. Exceptionally, however, three overseas territories apply a withholding tax on income from savings of UK residents under the terms of an agreement with the UK providing for measures equivalent to the European Savings Directive.
The amounts paid to the United Kingdom by those overseas territories in relation to these withholding taxes for the most recent year available are shown in the following table.
Amount of withholding tax UK Overseas territories Year end Approx. £ equivalent British Virgin Islands 31 December 2008 2,470.39 Gibraltar 30 June 2008 379,801.55 Turks and Caicos Islands 30 September 2008 2,901.36