The UK and Bermuda have signed a tax information exchange agreement. It is the first comprehensive TIEA to be signed by the UK and covers both direct and indirect tax matters. If ratified, the treaty will enter into force in 12 months time.

TIEAs enable governments to enforce their domestic tax laws by exchanging, on request, information relevant to a tax matter covered by the arrangements.

Previously, the UK has concluded limited agreements providing for the exchange of information in relation to the taxation of savings income with Jersey, Guernsey, the Isle of Man, Gibraltar, the Cayman Islands, the British Virgin Islands, Anguilla, the Turks & Caicos Islands, Montserrat, the Netherlands Antilles and Aruba.

Bermuda already has TIEAs in force with the US and Australia.

Jane Kennedy, UK Financial Secretary to the Treasury, said: "I commend the Government of Bermuda for its willingness to implement the high standards of transparency and exchange of information to which it is committed and for its continuing leadership in this important global tax policy area."