Chancellor George Osborne announced in Washington today that the Isle of Man has become the first British dependency to sign an agreement with the UK on automatic sharing of tax information.
Chief Minister Allan Bell said the signing of the deal was ‘world leading’ for the Isle of Man and would ‘once and for all’ rid us of the ‘outdated name of tax haven’.
‘This undoubtedly will become the global standard, the shape of things to come,’ he added.
A similar deal with the United States is expected to be signed shortly.
The island already shares information automatically on personal savings income with the UK and other EU countries but the new agreement will extend disclosure to include companies and trusts as from 2016.
Mr Bell, who signed the agreement in London with HM Treasury Exchequer Secretary David Gauke, said the island had led the way on tax transparency and as a result relations with UK Treasury were better than they had even been.
He said the deal would come as no surprise to the island’s business community with whom the government had consulted widely.
Mr Osborne made the announcement following a meeting of the IMF and G20 finance ministers in Washington.