100060 – Background – The Crown Dependencies and Overseas Territories Agreements (CDOT)

The Crown Dependencies of Guernsey, the Isle of Man and Jersey and the UK Overseas Territories of Anguilla, Bermuda, the British Virgin Islands, the Cayman Islands, Gibraltar, Montserrat and the Turks & Caicos Islands have all entered into agreements with the UK to automatically exchange information on financial accounts.

Of these, the agreements with the three Crown Dependencies and with Gibraltar are reciprocal thus imposing obligations on UK financial institutions to identify, maintain and report information to HMRC on financial accounts held by individuals and entities resident for tax purposes in those territories. The regulations that require this are The International Tax Compliance (Crown Dependencies and Gibraltar) Regulations 2014 (SI 2014/520) as amended by The International Tax Compliance (Crown Dependencies and Gibraltar) (Amendment) Regulations 2015 (SI 2015/873).

The agreements with the remaining six Overseas Territories are non-reciprocal meaning that while HMRC will receive information from these territories there is no requirement for reporting in the opposite direction.