The United Kingdom is about to finalize its crackdown on offshore tax havens. This crackdown is required in order for the UK to avoid being subjected to the proposed European Union withholding tax regime.

The House of Commons is expected to approve four more regulations today which would authorize exchanging information about the holdings and tax liabilities of EU citizens required under the Savings Directive with the Netherlands Antilles, Aruba, the Virgin Islands and Monsterrat.

Related guidelines have already been approved covering Jersey, Guernsey and the Isle of Man, and non-reciprocal arrangements have been agreed with Anguilla, the Cayman Islands and the Turks and Caicos Islands.

Gibraltar, whose compliance has caused some difficulties, does not require a separate agreement, since, technically, it is regarded as part of the UK.

This directive is due to become effective on July 1.

Completing this crackdown required some decisive "arm-twisting" by Treasury ministers of island administrations who are concerned as to what effect the crackdown will have on their economies.

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