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A new tax information exchange arrangement (TIEA) between the United Kingdom and Bermuda was signed in London on 4 December 2007.

TIEAs allow governments to enforce their domestic tax laws by exchanging, on request, information relevant to a tax matter covered by the arrangements. The new TIEA between the UK and Bermuda is the first comprehensive agreement to be signed by the UK and covers both direct and indirect tax matters. This follows the OECD Model Agreement on Exchange of Information on Tax Matters.

Previously, the UK has concluded limited agreements providing for the exchange of information in relation to the taxation of income from savings 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 United States and Australia.

Welcoming signature, the Financial Secretary to the Treasury, the Rt. Hon Jane Kennedy MP said: "these new arrangements represent a significant step in our efforts to counter and prevent tax evasion and avoidance. 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."

The arrangement will enter into force in 12 months time, provided both countries have completed their legislative procedures to give effect to the arrangement.

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Exchange of letters between the UK and Bermuda concerning a TIEA