The government of the UK has signed a tax sharing agreement with the Isle of Man authorities in order to tackle financial crime and tax evasion.

Under the agreement, the two governments will automatically exchange information on tax residents every year. The act is similar to the an agreement with the US through the foreign account tax compliance act. The US Foreign Account Tax Compliance Act aims to check tax evasion of US taxpayers through accounts in foreign countries.

UK's Facta agreement includes exemptions for certain pension schemes registered with HMRC and other products such as Isas, National Savings & Investments premium bonds and company share save schemes. David Gauke, the exchequer secretary to the Treasury said that the agreement will boost UK's ability t track tax offenders.

Isle of Man chief minister Allan Bell said, "The nature of tax cooperation is changing and automatic exchange is becoming the global standard. The Island already shares tax information automatically under the EU savings directive and has recently announced that it will do so on a wider basis with the USA."

He also said that the government of Isle of Man is aiming to ensure tax transparency and international cooperation and that the agreement with the UK government is a step in that direction.