Gibraltar and Bermuda are the latest British overseas territories (after the Cayman Islands) to sign a FATCA-style intergovernmental agreement (IGA) with the UK for automatic exchange of information for tax purposes.

The Bermuda Ministry of Finance said in a statement that the signing of the IGA is in line with its international tax strategy 'to demonstrate our commitment to tax transparency and automatic exchange of information and ensure Bermuda's reputation as the premier international financial jurisdiction in which to do business'.

Going forward, Bermuda's financial institutions must now identify all UK residents with interests in Bermuda and automatically report them to the Treasury on an annual basis. The Treasury will receive the information on those residents in bulk form and will be able to issue group requests for information in relation to so-called 'recalcitrant clients' of Bermuda financial institutions, that is those who refuse consent to allow the financial institution to automatically share their information.

Additionally, where the Treasury initiates investigations relating to possible tax evasion by UK taxpayers, a request for information can be made under the UK/Bermuda tax information exchange agreement (TIEA) which ensures the confidentiality of the information .

Treasury secretary David Gauke has also announced the signing of a TIEA with Gibraltar to permit automatic exchange of information.