Isle of Man bridles at tax clawback

The UK’s fractious relationship with its overseas dependencies worsened on Tuesday as the Isle of Man said it had been plunged into an “unprecedented” financial crisis after London decided to claw back £50m in annual tax revenues from next year.

In an interview with the Financial Times, Tony Brown, chief minister of the island, hit out at changes to the common purse agreement that will mean far less value added tax revenue will flow from the mainland to the island.