The governments of the UK and Belize have signed an agreement providing for the exchange of information related to taxes.

The agreement was signed yesterday in London by Stephen Timms MP and Kamela Palma, financial secretary to the treasury high commissioner for the government of Belize.

The UK is shortly expected to sign further tax information exchange agreements with Dominica and Grenada.

Earlier this month the UK authorities signed what it called its first “comprehensive” Double Taxation Agreement with the Kingdom of Bahrain. Key features of the agreement include: the latest OECD provision on exchange of information; a zero rate of withholding tax on dividends (except for REITs) and on royalties; and a zero rate of withholding tax on interest (but with a provision to ensure the benefits of the interest article can only flow to residents of the other state).