The government has struck a deal with the Isle of Man as part of its ongoing battle to clamp down on offshore tax avoidance.
Under the terms of the deal a wide range of financial information on UK taxpayers with accounts in the Isle of Man will be reported to HM Revenue & Customs (HMRC) automatically each year.
The agreement will give individuals with Isle of Man-based accounts the chance to come forward and settle any past affairs before their account information is automatically shared with the government.
Chancellor George Osborne said the agreement followed deals done with the US and Switzerland, and he hoped to see similar arrangements struck with Jersey and Guernsey.
‘The government is committed to tackling tax evasion and this agreement will greatly enhance HMRC’s ability to clamp down on those who try to hide their money offshore,’ he said. ‘I welcome the progress made with the Isle of Man and look forward to working on this new standard in the automatic exchange of tax information.’