Why UK’s network of ‘Treasure Island’ tax havens is in trouble

The islands of Britain’s former empire have served as the premier jurisdiction for everyone from cash-rich Chinese officials to Russian oligarchs and Western firms seeking lower taxes — or complete secrecy.

The United Kingdom’s exotic network of “Treasure Island” tax havens could be facing the biggest threat to its existence in half a century after the United States and its allies pledged to squeeze more tax out of large, profitable multinational companies. The often distant islands of Britain’s former empire have served as the premier jurisdiction for everyone from cash-rich Chinese officials to Russian oligarchs to Western firms to hedge funds seeking lower taxes – or complete secrecy. But a tax deal hashed out by Group of Seven (G7) finance ministers in a grand 19th-century mansion near Buckingham Palace is likely to hit the UK’s treasure islands hard after decades of dodging attempts by major economies to claw back revenue.