By Alex Brummer This Is Money

British Crown dependencies, such as the Cayman Islands and British Virgin Islands, are in line for a tax clampdown.

Finance ministers from the Group of 20 advanced and emerging market countries have urged the territories to bring an end to their tax free status that is undermining the ability of advanced nations to capture revenue vitally needed to reduce fiscal deficits.

Chancellor George Osborne is encouraging them to come into line as soon as is practical. If these countries want to retain their status as British Crown territories, and the benefits that brings, they will have to conform.

The Government has already been successful in persuading territories closer to home – including Jersey, Guernsey and the Isle of Man – to comply with international regulations put in place by the OECD.

In its communique the G20 urged ‘all jurisdictions to quickly implement recommendations made where the legal framework fails to comply with the standard.’

The Caymans and BVI have become regarded as notorious territories where the super-rich and corporations can hide their affairs from the tax authorities.

‘We’re delighted that George Osborne is committed to bringing tax havens to heel – now he needs to do the hard work to get British overseas territories and Crown Dependencies signed up without delay,’ Emma Seery, Oxfam’s head of development finance said.

‘If the G20’s words are turned into action it would be a massive step towards eliminating a major source of tax-dodging that costs the UK and poor countries countless billions.

‘This is money that should be creating jobs and opportunities in the UK, and providing life-saving medicines for children in Africa, rather than sitting offshore idle and hidden,’ Oxfam said.

The HMRC estimates that tax avoidance could be costing the Exchequer up to £30bn a year.

But Osborne’s clampdown on tax avoidance by the super-wealthy in Britain is starting to make an impact.

The HMRC’s ‘high net worth unit’ brought in £220m last year, a rise of 10pc. Previously this money went uncollected, meaning it adds to the taxes already paid by the same individuals.

The search for missing revenues – together with anger in Britain about tax avoidance by big multinationals such as Starbucks and Google – is galvanising finance ministers from the richest nations to stamp out bad behaviour.

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