The European Union's Savings Tax Directive does not presently apply between Gibraltar and the UK, according to the Gibraltar government, as they are not separate member states of the EU.

The following joint statement has been issued by the chief minister of Gibraltar, Peter Caruana, and the UK government's Paymaster General, Dawn Primarollo:

“The Savings Tax Directive, which comes into effect on July 1, applies to savings income payments made in one Member State to someone resident in another Member State. Accordingly, because the UK and Gibraltar are not separate member states, the Directive does not apply between them.

“The UK and Gibraltar Governments are in discussion and working together with a view to agreeing arrangements to close this gap between them as soon as possible during the next few months, on terms that would offer a choice between exchange of information and withholding tax."