Overseas Territories Tax Justice

It is troubling that the British Virgin Islands, Cayman Islands, and Bermuda, three of the world’s most significant corporate tax havens, are under the UK’s jurisdiction. According to the Tax Justice Network, these territories alone cost an eye-watering $84 billion in lost tax revenue each year; money which could be building hospitals, funding schools, and supporting communities.

Parliament rightly passed legislation in 2018 to introduce public registers of company ownership. Yet, the Government has dragged its feet, allowing financial secrecy to persist. This is not just a missed opportunity, but a dereliction of duty.

My Liberal Democrat Parliamentary colleagues and I have consistently championed a fairer, more transparent tax system. We support international efforts like the OECD’s work on profit shifting and the proposed UN tax convention. We’ve called for the reversal of Conservative tax breaks for banks, a tripling of the digital services tax on tech giants, and the closure of capital gains loopholes. We also propose a 4% tax on FTSE 100 share buybacks, which would encourage investment in people and communities, not just shareholder profits.

Our Europe spokesperson, James MacCleary, made the case in Parliament: “The UK Government cannot shrug off responsibility… This new Government must finally act and ensure that overseas territories meet the same transparency standards as the UK.” The recent conviction of the former BVI Premier for money laundering in the US is a stark reminder of the risks we face when secrecy is allowed to fester.

Meanwhile, over £830 million of UK-linked property is owned by individuals close to Vladimir Putin. We must do more to seize and repurpose these assets to support Ukraine’s reconstruction.

The scale of global tax avoidance is staggering; up to $348 billion is lost each year, with almost a quarter of that routed through the UK and its territories.

The Liberal Democrats will continue to push for reform of “Non-Dom” status, a global minimum corporation tax of 21%, and a properly resourced crackdown on economic crime. Whether a multinational corporation or a wealthy individual: everyone must pay their fair share.