The UK has watered down proposals by the EU in a proposed European blacklist of tax havens, successfully defending the Channel Islands and British overseas territories.

EU finance ministers agreed yesterday on the criteria for a blacklist of tax havens but bowed to the blocking by the UK and some other EU states of a move to include zero or near zero corporate tax rates as part of the screening process. 

The European Commission has taken the lead on cracking down on tax havens and wants to draw up a list of problem jurisdictions by the end of next year.

The ministers agreed to delay that decision on corporate t...