Research Briefing
By David Torrance
15 July 2024

The Crown Dependencies

Summary
1
What are Crown Dependencies?
2 UK Government relations with the Crown Dependencies
3 Extension of UK legislation to the Crown Dependencies
4 Crown Dependencies and international treaties
5 Useful websites and further reading

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Number CBP8611

The Crown Dependencies

Image Credits
Crown Dependencies by Rixie. Adobe Stock # 488189021
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The Crown Dependencies

Contents
Summary

5

1

What are Crown Dependencies?

6

1.1

Constitutional status

6

1.2

Historical background

7

The Channel Islands

7

Isle of Man

8

Governance

8

The Channel Islands

8Isle of Man

9

Tynwald Day

9

1.4

Legislative process

10

1.5

Nationality

11

1.6

The Crown

112

UK Government relations with the Crown Dependencies

13

2.1

Intergovernmental relations

14

British-Irish Council

14

Chief Ministers’ Quarterly

15

1.3

Council of Environment Ministers of UK Overseas Territories and Crown
Dependencies
16
Judicial Committee of the Privy Council

16

Financial relations

16

Revenue sharing arrangement

17

Disputes

18

Relations since 2010

19

3

Extension of UK legislation to the Crown Dependencies

20

3.1

Constitutional convention

20

3.2

Fisheries Act 2020

21

2.2
2.3

3

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The Crown Dependencies

3.3

The Crown Dependencies and “good government”

23

3.4

Beneficial ownership registers

23

3.5

Response in the Crown Dependencies

25

3.6

Proposals for reform

25

4

Crown Dependencies and international treaties

27

The 1950 declaration

27

4.1

Process for extension of international treaties

27

4.2

Brexit and the Crown Dependencies

28

4.3

Letters of Entrustment

30

4.4

International representation

30

4.5

Overseas offices

32

5

Useful websites and further reading

33

Publications

33

4

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Summary
The Crown Dependencies are the Bailiwick of Jersey, the Bailiwick of Guernsey
and the Isle of Man.
The Crown Dependencies are not part of the UK but are self-governing
dependencies of the Crown. This means they have their own directly elected
legislative assemblies, administrative, fiscal and legal systems. They are notrepresented in the UK Parliament. The Crown Dependencies have never beencolonies of the UK. Nor are they British Overseas Territories, such as Gibraltar,
which have a different relationship with the UK.
The constitutional relationship of the Crown Dependencies with the UK isthrough the Crown and is not enshrined in any formal constitutional
document. The UK Government is responsible for the defence andinternational relations of the Islands, while the Crown, acting through the
Privy Council, is ultimately responsible for ensuring their “good government”.
Primary legislation passed by the UK Parliament does not ordinarily apply to
the Crown Dependencies. In certain cases, it can be extended by Order in
Council made with the agreement of the Crown Dependencies concerned
under an enabling provision known as a Permissive Extent Clause.
This briefing paper examines the constitutional status of the Crown
Dependencies, their history and governance, as well as relations with the UK,international treaties and the impact of Brexit.

5

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The Crown Dependencies

1

What are Crown Dependencies?

The Crown Dependencies are the Bailiwick of Jersey, the Bailiwick of Guernsey
and the Isle of Man. 1 Within the Bailiwick of Guernsey there are three separate
jurisdictions: Guernsey (which includes the islands of Herm and Jethou);Alderney; and Sark (which includes the island of Brecqhou).
The Crown Dependencies are self-governing entities, over which the Crown
has certain responsibilities. Each has a different historic and constitutional
relationship with the Crown, but they are not part of the United Kingdom. The
three Dependencies each have their own political, legal and fiscal systems,
separate from the UK. 2
King Charles III is Head of State in each Dependency and is represented ineach island territory by a Lieutenant Governor. In the Channel Islands theKing is styled Duke of Normandy, and in the Isle of Man, Lord of Mann.
Although the Royal Family website notes that the islands “owe allegiance to
The King in his role as Duke of Normandy”, 3 that title was renounced by Henry
III in 1259 and removed from his seal and official styles in 1260. 4
The “British Islands” is a term within the law of the United Kingdom which has
existed since 1889. The Interpretation Act 1978 defines this as “the United
Kingdom, the Channel Islands and the Isle of Man”.

1.1

Constitutional status
The 1973 report of the Royal Commission on the Constitution (also known as
the “Kilbrandon Report”) referred to the constitutional position of the Crown
Dependencies as “unique”:
In some respects they are like miniature states with wide powers of selfgovernment, while their method of functioning through committees is much
more akin to that of United Kingdom local authorities. 5

1

2

3
4

5

6

For the origins of the term “Crown Dependency”, see “Crown Dependency”: The constitutionalversion of the “Ploughman’s Lunch”?, Edge_Law blog, 8 April 2024.
Social legislation is also distinct. Homosexuality was decriminalised in the Isle of Man 1992, 25 years
after England and Wales.
Crown Dependencies, Royal Family website.
Royal Styles and Titles in England and Great Britain, Heraldica website. In both Jersey and Guernsey
the Monarch, whether male or female, is toasted as “the Duke”.
Royal Commission on the Constitution 1969-1973 Volume 1, Cmnd 5460, London: HMSO, para 1360.
In 2005 Jersey adopted a ministerial form of government.

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A 2010 Commons Justice Committee report referred to “their essential
independence from the UK [and] their independence from each other”. 6 The
same report emphasised that the Crown Dependencies’ relationship was with
the Crown rather than the UK, and that the Government’s responsibilities
were derived from that fact. As the former Justice Secretary Jack Straw
observed in 2008:
The relationship between us and the Crown Dependencies is a subtle one. They
are dependencies of the Crown, they are not part of the United Kingdom, so the
responsibilities I have for them are as a privy councillor. 7

The Crown Dependencies are not represented in the UK Parliament and theirrelationship with the European Union between 1973 and 2020 was largely
limited to membership of the customs union. 8 Although self-governing, the UK
Parliament can legislate:
for the Crown Dependencies in the areas of defence, nationality, citizenship,
Succession to the Throne, extradition and broadcasting, by implication limiting
the competence of the Island jurisdictions in these areas. 9

1.2

Historical background
The Crown Dependencies have never been colonies of the UK. Nor are theyOverseas Territories, such as Gibraltar, which have a different constitutional
relationship with the UK.

The Channel Islands
Situated 10-30 miles off the north-west coast of France, the Channel Islands
comprise two Crown Dependencies, the Bailiwicks of Jersey and Guernsey.
The Bailiwick of Guernsey comprises Guernsey (including the islands of Hermand Jethou), Alderney and Sark (including the island of Brecqhou).
The Channel Islands were originally part of the Duchy of Normandy. Following
England’s loss of continental Normandy to France in 1204, the Channel
Islands pledged allegiance to the then English Crown in return for aguarantee concerning their local customs. Royal Charters were granted to
the Bailiwick of Jersey and the Bailiwick of Guernsey. 10
Jersey and Guernsey annually celebrate Liberation Day on 9 May. This
commemorates the islands’ liberation from German occupation during theSecond World War.

6
7
8

9
10

7

Commons Justice Committee, Crown Dependencies, 23 March 2010, p44.
Commons Justice Committee, Crown Dependencies, p6.
Protocol 3 of the UK’s Treaty of Accession also provided for the free movement of goods and(asymmetric) free movement of people in the Crown Dependencies.
Justice Committee, Crown Dependencies, p20.
Royal Family website, Crown Dependencies.

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Isle of Man
The Isle of Man lies in the Irish Sea, equidistant between England, Scotland
and Northern Ireland. Originally part of the Norwegian Kingdom of the Isles,
its legislative system was introduced around 800AD, thus making its
parliament “the oldest […] in the world with an unbroken existence”. 11
In 1266, the island was ceded to Scotland, while England later acquired it bytreaty under Edward I. The lordship of Mann was handed over to English lords
in return for regular payments to successive monarchs. From 1405 to 1765, theisland was ruled by the Earls of Derby and later the Dukes of Atholl, as Lords
of Mann.
The use of the island as a secure base for smugglers became such a problem
that in 1765 the British government required all customs and taxes to be paid
to its Exchequer. The lordship reverted to the Crown and King George III
became Lord of Mann. 12
The modern constitutional relationship between the Isle of Man and the UK
dates from 1866, when an Act of Parliament was passed separating Manx
revenues from those of the UK and giving the island a limited measure ofcontrol over “insular” (or domestic) expenditure. Since then a series ofmeasures, culminating in the Isle of Man Act 1958, 13 transferred more control
into local hands. 14
Appendix 1 of the Justice Committee’s 2010 report on Crown Dependencies
includes an overview of the “geography, people, government, economy andconstitutional position of each jurisdiction”.

1.3

Governance
The Channel Islands
The unicameral States of Guernsey (États de Guernesey) is the parliament of
Guernsey. It comprises 38 People’s Deputies and 2 Alderney Deputies. All its
enactments apply to the island of Herm, while some also apply to Alderney
and Sark as “Bailiwick-wide legislation” (with the consent of the States ofAlderney or Sark Chief Pleas). 15
Until relatively recently, Sark’s government was based on a feudal system(under a “Seigneur”, or Lord) and was therefore unelected. This arrangement

11
12
13
14

15

8

Tynwald website, Welcome to the Oldest Continuous Parliament in the World.
The Isle of Man’s Path to Autonomy, History Today website, 9 September 2014.
This was later repealed and replaced by the Isle of Man Act 1979.
See the Isle of Man Customs, Harbours, and Public Purposes Act 1866 and House of Keys Election Act
1866.
The States of Guernsey may legislate for Sark on criminal matters without the consent of the Chief
Pleas.

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came to be considered untenable in the light of human rights law, andreforms led to elections in 2008 (see Section 3.1 below). 16
Jersey’s States Assembly (Assemblée des États) is also unicameral, consistingof 37 Deputies elected across 9 districts and 12 Constables representing 12
parishes. 17 The States Assembly elects the Chief Minister who, with Assembly
approval, appoints the Council of Ministers.

Isle of Man
The Isle of Man Parliament, known as the (High Court of) Tynwald, consists of
two branches: the Legislative Council and the House of Keys. All Members of
the Legislative Council (MLCs) are indirectly elected by the 24 Members of theHouse of Keys (MHKs), with the exception of the President of Tynwald, theLord Bishop of Sodor and Man (a voting member) and the Attorney General.
These are all ex-officio office holders. 18 Tynwald sits as a single body to deal
with financial and policy matters.

Tynwald Day
On 5 July each year, the Tynwald Court assembles in the open air on Tynwald
Hill at St John’s for Tynwald Day. The Lieutenant-Governor of the Isle of Man
presides.
Following a religious service in the Royal Chapel, members of Tynwald
process to Tynwald Hill for proceedings presided over by the Lieutenant
Governor. They then return to the Royal Chapel where a formal sitting of
Tynwald takes place. By statute, each Act of Tynwald must be promulgatedon Tynwald Hill within 18 months of enactment or it ceases to have effect. It is
promulgated in English and in Manx Gaelic. Any person may also approach
Tynwald Hill on Tynwald Day to present a Petition for Redress. 19

Political parties
Each Crown Dependency has its own distinct party system but also a strong
tradition of non-aligned “independent” candidates/representatives.
In Jersey there is the Jersey Alliance (centre right), Jersey Liberal
Conservatives (also centre right), Reform Jersey (social democratic) and theProgress Party (centrist).

16
17

18

19

9

Jonathan Parry · Life on Sark, London Review of Books 45:10, 18 May 2023.
The Jersey election of 22 June 2022 was the first since the abolition of the post of Senator and theresulting increase in the number of Deputies.
Under the Constitution Bill 2023, a private members bill guided through the House of Keys by Lawrie
Hooper MHK, the Bishop of Sodor and Man would retain their seat in the Legislative Council but lose
the right to vote (see Removal of bishop's vote moves forward in Legislative Council, BBC News
online, 12 June 2024).
See Tynwald website, Tynwald Day. There are no equivalent ceremonies in the Channel Islands.

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The Crown Dependencies

Guernsey has the Alliance Party Guernsey, the Guernsey Party, and the
Guernsey Partnership of Independents.
The Isle of Man has the Isle of Man Green Party, the Liberal Vannin Party andthe Manx Labour Party. 20

1.4

Legislative process
Principal legislation made by Crown Dependency legislatures requires Royal
Assent. The UK Ministry of Justice examines each piece of legislation to ensure
there is no conflict with the UK’s international obligations (including theEuropean Convention on Human Rights) or with any “fundamental
constitutional principles”. Having done so, it advises the Privy Council of theUnited Kingdom as to whether His Majesty should make an Assenting Order. 21
The Justice Secretary can recommend that Royal Assent be withheld,
although this is rare (see Section 3.1 below).
For Jersey legislation, Royal Assent is granted by the King in Council (the Privy
Council). 22 For Isle of Man legislation, the granting of Royal Assent isdelegated to the Lieutenant Governor for many “non-reserved” purposes. 23
The Ministry of Justice still reviews Manx legislation prior to indicating to the
Lieutenant Governor that s/he may grant Assent. Projets de Loi (legislation)
approved by the States of Guernsey, the States of Alderney or the Chief Pleas
of Sark have, as of 29 February 2024, been subject to a procedure similar tothat in the Isle of Man. 24For more on Royal Assent in the Crown Dependencies,
see Commons Library research briefing CBP9466, Royal Assent.
The 1973 report of the Royal Commission on the Constitution observed that it
was practice at the beginning of each reign to appoint Committees of the
Privy Council to “entertain petitions from the Channel Islands and the Isle of
Man respectively”. 25
The Committee for the Affairs of Jersey and Guernsey, for example, is the bodywhich recommends approval of Channel Islands legislation. There is no longer
an active Privy Council committee for the Isle of Man.

20

21

22

23

24
25

10

There also exists Mec Vannin, the Manx Nationalist Party. This has been campaigning for the Isle ofMan’s independence from the United Kingdom since 1962.
See Ministry of Justice, Background briefing on the Crown Dependencies: Jersey, Guernsey and theIsle of Man.
There are proposals that assent for Jersey legislation be delegated to its Lieutenant Governor as
per the Isle of Man precedent.
See the Isle of Man Constitution Act 1990 and the Royal Assent to Legislation and Sodor and Man
Diocesan Synod Measures (Isle of Man) Order 2022.
Royal Assent to Legislation (Delegation to Lieutenant-Governor) (Bailiwick of Guernsey) Order 2024.
Royal Commission on the Constitution, para 1361.

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Farida Eden, a constitutional law specialist at the Ministry of Justice,explained the process to the Commons Justice Committee in 2010:
What happens is that a piece of legislation comes into us and we think maybe
the drafting is not quite tight enough or we think there might be a humanrights point, and we will get on the phone to our opposite numbers in one of
the Crown Dependencies and talk them through it. It is a sort of partnershiprather than us taking a hard line and saying we are going to refuse Royal
Assent. Sometimes they will explain something to us and we will say thatmakes sense or sometimes we might seek assurances as to how a piece oflegislation is actually going to be operated in practice. 26

A Justice Committee inquiry found that Ministry of Justice lawyers were notnecessarily confining themselves to the constitutional grounds for review and“were questioning the form and policy content of insular legislation on othergrounds”, such as “congruence with UK policy”. This the Committee
considered constitutionally “inappropriate”. Later, Lord McNally, thenMinister of State for Justice, acknowledged this “second-guessing” had been“paternalistic and unnecessary”. 27

1.5

Nationality
Nationality is generally acknowledged as a UK responsibility. The British
Nationality Act 1981 conferred British citizenship on all those with close
connections with the UK, the Channel Islands and the Isle of Man. Each
Dependency has adopted the common format passport, while the Lieutenant
Governor is the passport-issuing authority on each island.
Jersey, Guernsey, the Isle of Man and the Republic of Ireland, together with
the UK, comprise the Common Travel Area. There are no immigration controls
between the UK and the Islands or between the Islands themselves.

1.6

The Crown
Each Crown Dependency has traditional ceremonial associated with the visitof a reigning monarch.

JerseyThere is usually a Special States Sitting and Sitting of the Royal Court as well
as a public homage at Royal Square in St Helier. 28 When Queen Elizabeth II
26
27

28

11

Justice Committee, Crown Dependencies, p23.
Commons Justice Committee, Crown Dependencies: developments since 2010, 10 December 2013,p16.
Events taking place during the Royal Visit, Government of Jersey website. On arrival to the Royal
Square on 15 July, the King and Queen will be led by the Royal Mace of 1663, gifted to the Iisland by
King Charles II in recognition of its loyalty to the Crown.

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visited in 2001, she was presented with two dead mallards on a silver tray,
part of an ancient tradition dating back to the Middle Ages when seigneurs(lords of the manor) would pay homage to the sovereign as the Duke ofNormandy. According to media reports, when the King visits in July 2024 hewill instead be gifted locally laid duck eggs, touching the bowl containing theeggs before they are accepted on his behalf by the Receiver General, theKing’s representative on the islands. 29

Guernsey
There is usually a special sitting of the States of Guernsey and a ceremony ofhomage (historically observed on the first visit of a new monarch) at St Peter
Port seafront. The ceremony is held in French and historic title holders,
Seigneurs and Dames of small parcels of land known as “Fiefs”, pay homage
to the King. 30

Isle of Man
King Charles III has yet to visit the Isle of Man following his Accession in
September 2022, although Queen Camilla did so in March 2024 to celebrate
the conferral of city status on Douglas. 31
King George VI presided at Tynwald Day in 1946, as did Queen Elizabeth II in
1979 (its millennial) and 2003. 32 Occasionally another member of the Royal
Family has presided, including Prince Edward in 1986, the then Prince ofWales in 2000 and the Princess Royal in 2021. 33
The Isle of Man’s Accession Proclamation for King Charles III in September
2022 included a local title for the first time. 34 During a ceremony atGovernment House in Onchan, Lieutenant-Governor General Sir John
Lorimer proclaimed the King:Charles III by the grace of God of the United Kingdom of Great Britain andNorthern Ireland and of his other realms and territories King, Lord of Mann,head of the Commonwealth, Defender of the Faith, to whom wedo acknowledge all faith and constant obedience […] God save the King, Lordof Mann. 35

29
30
31
32
33
34

35

12

King and Queen duck out of ancient tradition in tour of Channel Islands, Telegraph, 8 July 2024.
The Visit of His Majesty King Charles III and Her Majesty Queen Camilla, States of Guernsey website.
The Queen visits the Isle of Man, Royal Family website, 21 March 2024.
Tynwald Day 2003, Isle of Man Guide website.
The Isle of Man celebrate Tynwald Day in Royal company, ITV News Granada website.
See The Proclamation of Charles III, Edge_Law blog, 24 September 2022. For the texts of previous
Isle of Man proclamations see Office of the Clerk of Tynwald, Proclaiming the new monarch in theIsle of Man, 1765-1952, 14 September 2022.
Proclamation of the Lord of Mann at St. John’s, 16 September 2022. A second Proclamation took
place on Tynwald Hill in St John’s on 16 September, this time in English and in Manx Gaelic.

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The Crown Dependencies

2

UK Government relations with the
Crown Dependencies

The Ministry of Justice – through its Crown Dependencies Unit – is responsible
for managing the UK’s constitutional relationship with the Crown
Dependencies. 36
That relationship involves a variety of different responsibilities, including
involvement in Crown Appointments, 37 processing legislation for Royal Assent
and issuing “Letters of Entrustment”. These authorise Crown Dependency
governments to negotiate and conclude certain international agreements(see Section 4). 38
Other major aspects of this relationship involve:•

the Ministry of Justice reminding other Whitehall departments of their
obligations in relation to the Crown Dependencies and mediating contact
with the Islands where necessary;•

processing insular (or local) legislation prior to Royal Assent;•

keeping the Crown Dependencies informed in relation to any UK
legislation or international treaties intended to apply to or affect them;•

representing the interests of the Crown Dependencies on theinternational stage as appropriate;•

defence; and•advising the Sovereign if there is any threat to the good government of a
Dependency which would justify intervention. 39

Although the Ministry of Justice issued “how to” notes in 2013, there is no Act
of Parliament or other document clearly setting out the relationship between
the UK Government and the Crown Dependencies. As a group of Jersey
lawyers observed, as with “so much on our constitutional map”:
the relationship between the Crown Dependencies […] and the United Kingdom
is not clearly delineated [and] rest largely on the common law, ancient Royal

36
37

38

39

13

Previously, the responsible UK Government department was the Home Office.
See Ministry of Justice, Background briefing on the Crown Dependencies: Jersey, Guernsey and theIsle of Man, p4, for a full list of Crown Appointments.
See Ministry of Justice, Government Response to the Justice Select Committee Report ‘Crown
Dependencies: developments since 2010, March 2014, p15.
Justice Committee, Crown Dependencies, p3.

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Charters and constitutional convention about which there is not always
agreement. 40

By convention, the Isle of Man’s Chief Minister usually leads on external
engagement with Westminster and further afield, aided by the Crown andExternal Relations Directorate of the Isle of Man Cabinet Office. This differsfrom Jersey, which has a dedicated Minister for External Relations, andGuernsey, where the Lead Member of the Policy and Resources Committee
has responsibility for External Relations.
The House of Commons Justice Committee regularly examines therelationship between the Crown Dependencies and the UK government,“taking an in depth look at issues as they arise”. 41
In February 2024, the House of Commons Health and Social Care Committee
recommended that:
The UK Government must consider how to respond to another jurisdiction in theUK, or the Crown Dependencies, legislating to allow [Assisted Dying/Assisted
Suicide], and how it may impact jurisdictions which do not allow it. Following
the recommendation by the Jersey Citizens’ Assembly, it looks increasingly
likely that at least one jurisdiction among the UK and Crown Dependencies willallow AD/AS in the near future and Ministers should be actively involved in
discussions on how to approach the divergence in legislation. 42

2.1Intergovernmental relations
The three Crown Dependencies also take part in several statutory and nonstatutory intergovernmental forums, alongside other governments in the
British Isles. 43

British-Irish Council
The 1998 Belfast/Good Friday Agreement established the British-Irish Council(BIC) with a secretariat based (since 2012) in Edinburgh. According to the
BIC’s website, its purpose is:to promote the harmonious and mutually beneficial development of the totalityof relationships among the peoples of these islands [...] the BIC will exchange
information, discuss, consult and use best endeavours to reach agreement on

40

41

42

43

14

Jeffrey Jowell et al, The Barclay Cases: Beyond Kilbrandon, Jersey Legal Information Board, March2018.
For the most recent report, see House of Commons Justice Committee, The constitutional
relationship with the Crown Dependencies, HC 30, 28 March 2024.
House of Commons Health and Social Care Committee, Assisted Dying/Assisted Suicide, HC 321, 29
February 2024, p23.
The 1973 report of the Royal Commission on the Constitution had proposed a “Council of the Isles” tofacilitate relations between the UK and Crown Dependencies, but that proposal was not taken up by
the UK Government (see para 1508).

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The Crown Dependencies

co-operation on matters of mutual interest within the competence of therelevant administrations. 44

The BIC consists of representatives from the:• UK Government• Irish Government• Northern Ireland Executive (when fully functioning)• Scottish Government• Welsh Government• Isle of Man Government• States of Guernsey• Government of Jersey 45
The BIC usually meets twice a year at ministerial summits, as well as more
frequently via “work sector” meetings, which include ministers and officials
from specific policy areas. Work sectors cover a wide range of policy areas,
including energy, creative industries, transport and the misuse of substances,
all areas where there are common challenges across all member
administrations.
The three Crown Dependencies host BIC summit meetings, as do the othermember governments, on rotation.

Chief Ministers’ Quarterly
Following the UK’s Brexit referendum in June 2016, quarterly meetings took
place between the UK Government’s Minister for Exiting the European Unionand the Chief Ministers of Guernsey, Jersey and the Isle of Man. This formed
part of a programme of engagement concerning the UK’s departure from theEU. 46
In August 2017 Robin Walker, then a Minister at the Department for Exiting theEuropean Union, completed a three-day tour of Jersey, Guernsey and the Isleof Man to discuss the implications of Brexit for the Crown Dependencies. 47
The Chief Ministers’ Quarterly was replaced with a quarterly meeting of
officials. As Jersey’s Minister for External Relations, Ian Gorst, told theCommons Justice Committee in September 2021:

44
45
46

47

15

British-Irish Council website, About the Council.
The Council of Ministers adopted the “Government of Jersey” identity in February 2019.
See UK Government press release, Minister gives Brexit update to the Channel Islands and Isle ofMan, 5 March 2018.
DEXU news release, Brexit Minister Robin Walker visits the Crown Dependencies, 10 August 2017.

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Over the fullness of time we have ended up with, in effect, a weekly contact
group, which became a clearing house where relevant Departments sent
officials. With the demise of the Department for Exiting the European Union,that moved into the Cabinet Office, with the Paymaster General chairing thatat a ministerial level, but, equally, having good contacts with the Chancellor of
the Duchy of Lancaster. Officials have moved on and had that weekly Covid
clearing house as well. 48

Council of Environment Ministers of UK Overseas
Territories and Crown Dependencies
Along with their counterparts from the Overseas Territories, environment
ministers from Guernsey, Jersey and the Isle of Man hold regular meetings to
discuss their respective environmental agendas. The first gathering took
place in Gibraltar in 2015, with a second in Alderney in 2017, and a third on theIsle of Man in 2018. 49 It most recently met virtually in May 2021.

Judicial Committee of the Privy Council
While each Crown Dependency has its own legal system and courts of law, theJudicial Committee of the Privy Council in London remains the highest court ofappeal for the Crown Dependencies as well as the Overseas Territories andmany members of the Commonwealth.
On a recommendation from the Stonham Working Party in 1969, more formal
machinery for consultation between the UK and the Isle of Man wasestablished. The “Standing Committee on the Common Interests of the Isle of
Man and the United Kingdom” consisted of three members elected by Tynwald
and three representatives of the UK Government with a joint secretariat. It
met throughout the 1970s but appears to have lapsed thereafter. 50

2.2

Financial relations
Under long-standing agreement, the Isle of Man makes an annual
contribution to the UK for defence and common services, including overseas
representation. The amount is determined in accordance with the 1994
Contribution Agreement between the UK and Isle of Man governments. 51

48

49

50
51

16

Justice Committee, Oral evidence: Constitutional relationship with the Crown Dependencies, HC
595, 7 September 2021.
See States of Alderney press release, Third United Kingdom Overseas Territories (UKOT) & Crown
Dependencies (CD) Environment Ministerial Council Meeting, Isle of Man, February 2018, 12 February
2018.
See Royal Commission on the Constitution, para 1415.
The Isle of Man’s payment was introduced under the Isle of Man Customs, Harbours, and Public
Purposes Act 1866. Previously, the UK Treasury had retained all surplus Manx revenue.

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There is no equivalent contribution from the Channel Islands, although Jersey
maintains the Jersey Field Squadron (The Royal Militia Island of Jersey), a
Territorial Army Regiment, and Guernsey the Alderney Breakwater. 52
After the First World War an attempt was made by the UK Government torequire an “imperial contribution” from Jersey and Guernsey, but this was
successfully resisted by the islands on the basis that any contribution had tobe voluntary. 53
In accordance with the Jersey and Guernsey (Financial Provisions) Act 1947,
the Bailiwicks of Jersey and Guernsey occasionally surrender hereditary
revenues of the Crown to the UK Consolidated Fund, with each payment being
returned to Jersey and Guernsey within ten working days. In recent years, His
Majesty’s Receiver General for Jersey has sent the Treasurer of the States ofJersey both a cheque and a set of accounts in respect of hereditary revenues,
thereby avoiding the need for a “circular” transaction between Jersey and the
UK Exchequer. 54
All three Crown Dependencies neither receive grants from nor pay
contributions to the UK, and nor do their inhabitants pay UK taxes. Rather
each Crown Dependency pays for their needs out of their own revenues via
taxation, the rates of which are decided by the respective legislatures. Therehave, however, been arrangements under which the Crown Dependencies pay
for or reciprocate benefits in education and other social services received
from the UK.
In 2008, the UK Department of Health decided to terminate long-standing
Reciprocal Health Agreements with the Crown Dependencies under which
Island visitors to the UK and UK visitors to the Islands received free healthcare. This was on the basis that the Agreements did not represent value formoney for the UK taxpayer. 55 The decision was subsequently reversed, with a
new agreement coming into force on 1 October 2010.

Revenue sharing arrangement
In 1979 the UK and Isle of Man governments agreed to a revenue sharing
arrangement (RSA) which removed the need for customs barriers between the
Island, the UK and the European Union, and made the Island part of the EU’s
Customs Union and VAT territory. This replaced what had been known as the“Common Purse Agreement”. 56
Under the RSA, the Isle of Man and UK pooled VAT and most other indirect tax
revenues and share them according to the agreement. Pooled revenues canbe reviewed at the request of either party at any time, although termination
52

53

54
55
56

17

The Bailiwick of Guernsey also makes part of its contribution in the form of payment of passportfees, which are passed to the UK Ministry of Justice.
Guernsey and Jersey did make a voluntary contribution to the UK Exchequer as a contribution to thecost of the First World War.
Information provided by the Law Officers’ Department, St Helier, Jersey.
Justice Committee, Crown Dependencies, p13.
Unlike the Isle of Man, Jersey and Guernsey were not subject to EU VAT and excise directives.

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The Crown Dependencies

requires a two-year notice period. In 2011, the RSA was renegotiated to takeaccount of the “size and composition of the IOM economy”. 57
See Section 4.2 for the Crown Dependencies’ post-Brexit arrangements with
the UK.

2.3

Disputes
Constitutional disputes between the Crown Dependencies and the UK
Government are rare but not unprecedented. One such disagreement
concerned responsibility for broadcasting. Until the early 1960s, it seems not
to have been in dispute that this was a matter for the UK Parliament andGovernment, both the Wireless Telegraphy Act 1904 the Television Act 1954
having been extended to the Isle of Man.
In 1961 Radio Manx Limited (or “Manx Radio”), a company sponsored by theIsle of Man Government, applied to the UK Postmaster General for afrequency and a transmission licence. The application was refused. Tynwald
then requested the revocation of the Order in Council extending the relevant
Act to the island, while enacting legislation conferring powers to license
broadcasting in the Island on the Lieutenant Governor. The requests forrevocation of the Order in Council and for Royal Assent to the Bill were bothrefused, partly on the grounds that it conflicted with the UK’s international
obligations.
A 1962 proposal to license a television and radio station to transmit to the“British Islands” only was also refused by the UK. Only when the Isle of Man
submitted proposals for a radio station to broadcast to the Island alone were
they approved. A licence was issued in 1965 and a commercial broadcastingstation was established in the Island.
When the Marine etc Broadcasting (Offences) Bill was introduced to the UK
Parliament, it contained a clause permitting it to be extended by Order in
Council to the Isle of Man. The Isle of Man Government indicated its
preference for legislating in Tynwald for as much of the subject matter (pirate
broadcasting) as was within its constitutional competence, for example
criminal law. The Tynwald appealed to the Queen in Council (the Privy
Council) against extension, but this was rejected. 58
These disputes led to both the Stonham Working Party (see Section 2.1 above)and the Isle of Man seeking a new procedure for Royal Assent of Manxlegislation, which remains in place (see Section 1.4 above).

57
58

18

See Isle of Man Treasury, Customs and Excise Agreement, 5 August 2011.
See Royal Commission on the Constitution, paras 1421-29.

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The Crown Dependencies

Relations since 2010
A 2013 Commons Justice Committee report found that on a number ofoccasions since 2010 the UK had:
acted in ways which the Crown Dependencies judged to be inappropriate,wrong or unfair, and which have strained the relationship. These include
instances where the UK has made decisions which impacted on the Islands
without prior consultation. 59

However, the Committee also concluded that compared with the situation
prior to 2010, the relationship had:
improved considerably. The process for granting Royal Assent for Crown
Dependency legislation is much quicker; and the Islands are, in general, better
consulted about UK legislation and international measures affecting them.
Where tensions do arise, the Ministry of Justice works effectively to facilitate
resolution as far as possible. 60

In evidence, Lord McNally said that:
As long as the Westminster Government appreciate and understand the natureof that relationship—that they are not colonies and cannot be browbeaten
and bullied but have to be taken into account and discussed with— […] it is asolid relationship and one that I do not see needs any tinkering with in any
fundamental way. 61

59
60
61

19

Justice Committee, Crown Dependencies: developments since 2010, p11.
Justice Committee, Crown Dependencies: developments since 2010, p3.
Justice Committee, Crown Dependencies: developments since 2010, p14.

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The Crown Dependencies

3

Extension of UK legislation to the Crown
Dependencies

In contrast with the British Overseas Territories, for which the UK Parliament
has unlimited power to legislate, 62 UK primary legislation does not ordinarily
apply to the Crown Dependencies. Following prior consultation and consent it
can, however, be extended to them if:•

UK Government departments consider that primary UK legislation inwhole or in part needs to have effect in any of the Crown Dependencies;or•

UK Government departments have received a request from a Crown
Dependency seeking to extend provisions of a UK Act (with or without
modifications) to their jurisdiction by activation of a Permissive Extent
Clause (PEC).

This can happen either by “direct application” (expressly or by necessary
implication) or via an Order in Council. According to the Ministry of Justice,“for an Act to extend otherwise than by an Order in Council is now very
unusual”. 63
A PEC in a UK Bill could take the following form:
His Majesty may by Order in Council provide for any of the provisions of this Act
to extend, with or without modifications, to any of the Channel Islands or theIsle of Man. 64

Ministry of Justice guidance also states that UK departments:
must consult the Crown Dependencies at the earliest opportunity in the eventthat extension is under consideration and a PEC should not be included in a Billwithout the prior agreement of the Islands. 65

3.1

Constitutional convention
The 1973 Royal Commission on the Constitution observed that, by convention,
the UK Parliament did “not legislate for the Islands without their consent inmatters of taxation or other matters of purely domestic concern”. It also
62
63
64
65

20

See UK Government White Paper, The Overseas Territories, 28 June 2012.
Ministry of Justice, How To Note: Extension of UK primary legislation to the Crown Dependencies.
Ministry of Justice, How To Note: Extension of UK primary legislation to the Crown Dependencies.
Ministry of Justice, How To Note: Extension of UK primary legislation to the Crown Dependencies.

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The Crown Dependencies

noted that the last time the UK made use of prerogative Orders in Council tolegislate for a Crown Dependency was the Court of Appeal (Channel Islands)
Order 1949, although this had been based on a scheme which had priorapproval. 66
But this is a convention rather than a matter of law. 67 The Royal Commission
also concluded “that in the eyes of the courts [the UK] Parliament has aparamount power to legislate for the Islands in any circumstances”:
This does not, of course, mean that Parliament should be any more ready thanin the past to interfere in the Islands’ domestic affairs and any less mindful of
the need to preserve their autonomy […] If, exceptionally, circumstances
should demand the application to the Islands without their consent of
measures of a kind hitherto regarded as domestic, then Parliament would, in
our view, have the power to enact the necessary legislation. 68

In 2014, Lady Hale, the then president of the Supreme Court, noted the Royal
Commission’s view but added that it was “the practice to consult the Islands
before any United Kingdom legislation is extended to them”. 69
When, for example, the European Convention on Human Rights wasincorporated into UK law through the Human Rights Act 1998, there wasdiscussion as to whether that Act should be extended to the Crown
Dependencies. In the end, it was decided they would pass their own humanrights legislation. 70

3.2

Fisheries Act 2020
Unusually, the UK Government included a Permissive Extent Clause in the
Fisheries Act 2020 despite explicit opposition from Jersey and Guernsey. This
states that:His Majesty may by Order in Council provide for the following provisions of thisAct to extend, with or without modifications, to any of the Channel Islands or
the Isle of Man. 71

Giving evidence to the Commons Justice Committee in September 2021,
Deputy Jonathan Le Tocq, a former Chief Minister of Guernsey, said theprocess had “started in the right way, in the sense that we were consulted
months before and asked if we wanted to be included in a PEC”:

66
67

68
69
70

71

21

Royal Commission on the Constitution, para 1362.
As is the case with the Sewel Convention in its application to devolved areas in Scotland, Wales andNorthern Ireland.
Royal Commission on the Constitution, para 1473.
See Jowell et al, The Barclay Cases: Beyond Kilbrandon.
Jowell et al, The Barclay Cases: Beyond Kilbrandon. A similar arrangement exists regarding Brexit(see Section 4.2).
See section 53(6) on “Extent”.

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The Crown Dependencies

We thought about it and said, “No, we can legislate domestically for that as
and when it comes to it, and we will consider the issues at stake each time andproduce appropriate legislation where necessary.” That was all we heard formany months, until a few weeks before the amendment [to the Fisheries Bill]was put in. In terms of process, that left us with a bad feeling of why ask us if
the answer is, “We’re going to do this anyway”? On engagement, we felt thereasons given were unreasonable […] and it did not seem to us to be, in thisparticular instance, such an important, crucial and risky area that requiredthat sort of heavyhandedness. We made that clear. 72

The UK Government said the PEC would only be enacted as “a last resort”, butduring Commons consideration of the amendment the Conservative MP Sir
Bob Neill protested that it was:truly unprecedented for the Government to insist upon a permissive extent
clause without the agreement of the relevant Crown dependencies. Why, evenin an emergency, go down this rather provocative step? Why not wait until
such time as an emergency arises and let them legislate, as they haveindicated they would? 73

Primary legislation passed in the UK and extended to the Channel Islands
requires the resulting Order in Council to be registered in the islands’
respective courts following a vote. 74
Deputy Jonathan Le Tocq told the Commons Justice Committee that if theFisheries Act PEC was ever enacted then “there would be huge problems in it
being registered in our [Royal] courts. In Guernsey’s case, three Assemblies
would need to pass it, and that would be quite hard now.” Jersey’s Minister
for External Affairs, Ian Gorst, agreed:
You can see if you have already got to a confrontational situation and Her
Majesty signs an order in council, and it is dispatched to a territory in Jersey,
you are in a situation that you never want to get into. 75

If legislation is not registered in this way in Jersey and Guernsey, then it is“not enforceable” and would not be regarded as constitutionally valid (seeSection 3.5 below).
In March 2024, Guernsey and Jersey expressed frustration at the Channel
Islands’ inclusion in a draft UK law aimed at deterring boat crossings acrossthe English Channel by sending asylum seekers to Rwanda. 76

72

73
74
75

76

22

Justice Committee, Oral evidence: Constitutional relationship with the Crown Dependencies, HC
595, 7 September 2021.
HC Deb 13 Oct 2020 Vol 682 c265
This is not the case in the Isle of Man.
Justice Committee, Oral evidence: Constitutional relationship with the Crown Dependencies, HC
595, 7 September 2021.
Jersey and Guernsey's governments reiterate independence after being included in UK Rwanda bill,
ITV News online, 14 March 2024.

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The Crown Dependencies

3.3

The Crown Dependencies and “goodgovernment”
The Royal Commission on the Constitution also believed the UK could legislate
on behalf of the Crown Dependencies on the basis of what it called “goodgovernment”. In 2010, the Commons Justice Committee found “a high degreeof consensus amongst academics, legal advisors, politicians and officials” asto the meaning of this term:
They agree that good government would only be called into question in themost serious of circumstances, exemplified by the recent events in Turks andCaicos which did, indeed, lead to UK Government intervention. Suchcircumstances are likely to include a fundamental breakdown in public order
or endemic corruption in the government, legislature or judiciary. 77

Consideration of “good government” appears to have formed the basis for the
Justice Secretary’s initial rejection of Royal Assent for the first formulation ofa new democratic legislature for Sark in 2008. He declined to recommend the
proposed law for Assent on the basis that it was “inconsistent with basic
democratic principles, some of which were set out in the European
Convention on Human Rights”. When a revised law was resubmitted by Sark,
the Justice Secretary judged it to be acceptable and recommended it forRoyal Assent, which it duly received. 78
In its 2010 report, the Justice Committee recommended that the“independence and powers of self-determination of the Crown Dependencies”
should “only to be set aside in the most serious circumstances”, used only:in the event of a fundamental breakdown in public order or of the rule of law,endemic corruption in the government or the judiciary or other extreme
circumstance. 79

Giving evidence to a later inquiry, Lord McNally confirmed the UK
Government’s view that “unless there is real evidence of a breakdown either
in the policing or the integrity of the judiciary or general law and order”, itwould not intervene. 80

3.4

Beneficial ownership registers
Questions of “good government” also arose in the context of registers ofbeneficial interest and their possible extension to the Crown Dependencies.

77
78
79
80

23

Justice Committee, Crown Dependencies, p16.
Justice Committee, Crown Dependencies, p18.
Justice Committee, Crown Dependencies, p18.
Justice Committee, Crown Dependencies: developments since 2010, p30.

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The Crown Dependencies

Beneficial ownership is a legal term which refers to someone who enjoys thebenefits of owning something without being listed publicly as the owner.
The UK has registers of beneficial ownership for assets and trusts, whichmeans the beneficial (or ultimate) ownership of companies (but not trusts) is
publicly available. 81 In April 2014, the then Prime Minister David Cameron
wrote to the Crown Dependencies and British Overseas Territories (BOTs)
encouraging them to follow the UK’s example.
At the Commons Report Stage of the Sanctions and Anti Money Laundering
Bill 2017-19, the UK Government agreed to a new clause which would in effectcompel the BOTs to establish public registers of beneficial ownership. But it
did not agree a second amendment extending this to the Crown Dependencies
given their distinct constitutional status.
Later, during Parliamentary consideration of the Financial Services Bill 201719, a cross-party group of MPs proposed a similar amendment requiring
public registers with details of anyone owning more than 25% of a company
based in a Crown Dependency by 2020. The MPs cited the 1973 Royal
Commission on “good government”, although the Crown Dependencies
argued that their systems for combating money laundering alreadyrepresented this.
In response, the Chief Ministers of Guernsey, Jersey and the Isle of Man
argued that Westminster could not impose legislation without consent.
Lyndon Trott, Guernsey’s then Deputy Chief Minister, added that theimposition of a public register would “seriously undermine our longstanding
and close relationship with the UK and the crown”. 82
On 4 March 2019, the Government withdrew the Financial Services Bill, saying
the amendment would be considered at a later date. 83
In a joint statement, the Crown Dependencies announced on 19 June 2019 thatthey would implement their own publicly accessible registers of company
beneficial ownership in line with EU norms, but some years later. The jointcommitment by the governments of Guernsey, Jersey and the Isle of Man
pledged to “bring forward to our own parliament legislative proposals toestablish public access to beneficial ownership data of companies” held on acentral register “within 12 months” of the publication of the EU’s
Implementation Review of the Fifth Anti-Money Laundering Directive. That
review had been expected to conclude in January 2022. 84

81
82

83
84

24

See the Small Business, Enterprise & Employment Act 2015.
Crown dependencies set for transparency clash with Westminster, Financial Times, 3 March 2019.
According to the Financial Times report, Andrew Mitchell and Dame Margaret Hodge claimed in a
letter to supportive MPs that the Crown Dependencies acted as “secret tax havens facilitating
economic crime, tax avoidance and tax evasion”.
Ministers halt discussion of tax transparency bill, BBC News Online, 4 March 2019.
See Commons Library Briefing Paper CBP8259, Registers of beneficial ownership, pp23-24.

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The Crown Dependencies

Responding to this commitment, and following a question submitted by Nigel
Mills MP, the then Prime Minister Theresa May said she was:very pleased to see the announcement today from Jersey, Guernsey and theIsle of Man and indeed we continue to work with the Overseas Territories toensure that they do follow those standards and open those books, so thatpeople can see who is actually owning those companies. 85

3.5

Response in the Crown Dependencies
In response to the debate concerning registers of beneficial ownership, theStates of Guernsey’s Policy and Resources Committee proposed changes to
the Reform (Guernsey) Law 1948 to require that UK:
Acts of Parliament and Orders in Council which seek to apply to Guernsey will
be referred to the States of Deliberation for approval and consent before suchan Act of Parliament or Order in Council […] is registered in Guernsey’s Royal
Court.

This proposal was similar to a legal requirement already in place in Jersey,
where UK legislation is not law until it has been approved by the States ofJersey. 86
In 1968 the UK Government assured Guernsey that there was no question of it
seeking to legislate for the Island “in any taxation matter or in any othermatter which had long been accepted as the responsibility and concern of theinsular authorities”. 87

3.6

Proposals for reformIn their evidence to the Royal Commission on the Constitution, the States ofJersey and Tynwald proposed “an Act of Parliament making a formal divisionof legislative and executive responsibilities between the United Kingdom andthe Islands”. This was rejected by the UK Government on the basis that it
would leave it:with responsibility both for the good government of the Islands and for theirexternal relations, but without the power needed to exercise that
responsibility. 88

85
86
87
88

25

HC Deb 19 June 2019 Vol 662 c234
See section 31 of the States of Jersey Law 2005.
Royal Commission on the Constitution, para 1477.
Royal Commission on the Constitution, para 1480. The Government of Ireland Act 1920 was cited asa possible model.

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The Crown Dependencies

In 2013, the Commons Justice Committee also noted pressure towards“redefining the constitutional relationship in a way that allows the Islands
even greater independence from the UK”. But it concluded that while:
the relationship has evolved over time and will rightly continue to do so, itsvery nature imposes certain responsibilities on the UK which it cannot ignore.
We are therefore not convinced that any attempt to achieve a fundamental rebalancing would be fruitful. 89

89

26

Justice Committee, Crown Dependencies: developments since 2010, pp36-37.

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4

Crown Dependencies and international
treaties

The Crown Dependencies are not recognised internationally as sovereignstates in their own right but as “territories for which the United Kingdom is
responsible”. 90 As such they cannot sign up to international agreements
without a Letter of Entrustment (see Section 4.3 below) but can have the UK’s
ratification of such instruments extended to them.

The 1950 declaration
For the purposes of international agreements, until 1950 the Crown
Dependencies were regarded as part of the “metropolitan territory” of the UK.
In recognition of the fact that this might be inconsistent with theirconstitutional status as self-governing territories, a declaration was made to
the effect that, in future, any international treaty agreed by the UK would “notextend to the Island unless they were expressly included”. 91

4.1

Process for extension of international treaties
When the UK ratifies, accedes to, or accepts a treaty, convention or
agreement, by long-standing practice it does so on behalf of the United
Kingdom of Great Britain and Northern Ireland and any of the Crown
Dependencies or Overseas Territories that wish the treaty to apply. The UK’s
ratification, accession or acceptance can also be extended to Crown
Dependencies or Overseas Territories at a later date.
This means that when the UK is planning to ratify International Conventions,
Treaties, Protocols or Agreements (“International Instruments”) it consults
the Crown Dependencies concerning their extension. The Ministry of Justicestates that consultation regarding extension is a matter of:essential policy and administration. International instruments which propose
provisions relating directly to the Crown Dependencies should not be
negotiated unless consultation in good time in advance has taken place with
the Islands in question. Where applicable, the views of each Crown
Dependency may also be required to formulate the UK negotiating position on
an International Instrument.

90
91

27

See Ministry of Justice, Fact sheet on the UK’s relationship with the Crown Dependencies.
Royal Commission on the Constitution, para 1381.

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The Crown Dependencies

Normal practice is for initial UK consultation with the Crown Dependencies tooccur during the course of negotiating an International Instrument if thesubject of that Instrument might be relevant to the Crown Dependencies. 92
If a treaty is extended to one or all the Crown Dependencies, the UK is
responsible under international law for compliance with that treaty, forexample by ensuring there is appropriate “insular” legislation in place. 93

4.2

Brexit and the Crown Dependencies
The relationship between the Crown Dependencies and the European Union(EU) was based upon provisions in the EU Treaties and Protocol 3 (on the
Channel Islands and the Isle of Man) of the UK’s 1972 Treaty of Accession. 94
Under Protocol 3, the Crown Dependencies were part of the customs territoryof the EU and the common customs tariff, levies and agricultural importmeasures applied to trade between the Islands and non-member countries.
Crown Dependencies used their domestic legislation to implement EU
legislation falling within the parameters of this Protocol. Most other EU
legislation did not apply. 95
The Transition period ended on 31 December 2020, and Protocol 3 no longer
applies. Observing standard Government policy on international treaties, theUK Government worked closely with the Crown Dependencies during the Brexit
process.
As Lord Callanan explained in the House of Lords on 13 December 2018,
although the UK Government was responsible for the Crown Dependencies’international relations, Guernsey, Jersey and the Isle of Man would be
responsible for passing their own Exit legislation:
This includes legislation which may be required to implement the Withdrawal
Agreement in their jurisdictions. As the Prime Minister has made clear, thelongstanding constitutional relationships between the UK and the Crown
Dependencies will not change as a result of the UK’s decision to leave the EU. 96

92

93
94

95
96

28

Ministry of Justice, Fact sheet on the UK’s relationship with the Crown Dependencies. The Isle of Man
government told the Commons Justice Committee that the UK Government had, on occasion, “failed
to leave adequate time for consultation on international treaties which are to be applied to it”(Justice Committee, Crown Dependencies, p10).
Justice Committee, Crown Dependencies, p10.
The Royal Commission on the Constitution heard serious concerns from the Crown Dependencies
regarding the prospect of full membership of the then European Economic Community (see paras1389-92).
Justice Committee, Crown Dependencies: developments since 2010, p10.
Lord Callanan, Brexit: Written question – HL11872, 13 December 2018.

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Managing the transition
A Lords European Union Committee report on Brexit and the Crown
Dependencies noted “three intertwined, and potentially conflicting, priorities
for the Crown Dependencies in the context of the Brexit negotiations”:•

maintenance of their centuries-old constitutional relationship with theUK;•retention so far as possible of the benefits of the existing relationshipbetween the Crown Dependencies and the EU; and•the evolution of the Crown Dependencies’ international identities, while
respecting the UK’s constitutional obligation to represent them inmatters of defence and international relations.

The Committee also urged the Government “to support Guernsey and Jersey
in their efforts to ensure that the UK’s [World Trade Organisation]membership is extended to cover them, as it already does the Isle of Man”. 97
The UK’s WTO membership was extended to the Crown Dependencies witheffect from 1 January 2021.

Customs arrangements
Each Crown Dependency also signed separate customs arrangements with
the UK, which also took effect as of 1 January 2021.
The Customs and Excise (Amendment) Arrangement 2018 gave effect tospecific provisions in customs arrangements between the UK and the Isle of
Man to maintain a long-standing relationship once the Transition Period
ended. This was given effect by the Crown Dependencies Customs Union (Isleof Man) (EU Exit) Order 2018. Similar agreements were negotiated and signed
by Jersey and Guernsey.
Ian Gorst, Jersey’s Minister for External Relations, told the Commons JusticeCommittee that these arrangements helped ensure that a “constitutional
relationship” built on “privileges, protocols and royal charters” continued “tobe understood, respected and enhanced”. 98

Trade and Co-operation Agreement
On 24 December 2020 the UK Prime Minister and the President of theEuropean Union Commission announced agreement on a Trade and Cooperation Agreement (TCA) to take effect from 1 January 2021.
The Agreement included the Crown Dependencies in respect of goods andfisheries. In essence, EU vessels with a qualifying track record were to enjoy
97
98

29

Lords European Union Committee, Brexit: the Crown Dependencies, 23 March 2017, pp31-32.
Justice Committee, Oral evidence: Constitutional relationship with the Crown Dependencies, HC
595, 7 September 2021.

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The Crown Dependencies

continued access to Crown Dependency waters and vice versa. The latter has,of course, been rather fraught in respect of Jersey in particular. Interestingly,
the TCA included a 90-day “cooling-off period” which would have allowed anyof the Crown Dependencies to exit the Treaty if it wished. 99
Subsequent Free Trade Agreements agreed between the UK and other states
generally only included the Crown Dependencies for goods aspects, albeit
with the possibility of later inclusion in services aspects. 100

4.3

Letters of Entrustment
Guernsey, Jersey and the Isle of Man can sign specific international
agreements if they have been authorised to do so by the UK, a process known
as “Entrustment”. Letters of Entrustment have been issued in the case of Tax
Information Exchange Agreements and other agreements relating to taxationthat provide for exchange of information on tax matters between the Crown
Dependencies and third countries.
A 2013 report from the Justice Committee proposed greater use of Letters of
Entrustment. It said this:
could help mitigate the potential difficulties on occasions where the Crown
Dependencies need to pursue interests which are separate from those of theUK. 101

The same Committee urged the Ministry of Justice to:work with the Crown Dependencies to develop expeditious arrangements todeal with Dependency access to Bilateral Investment Treaties, now that the UK
has ceded competence for these to the EU. 102

In September 2020, an Agreement on social security was agreed between theStates of Guernsey and the Government of the Republic of Latvia. The
Agreement was the first of its type to be negotiated and concluded by theStates under entrustment from the UK.

4.4

International representation
In 2007-08, the then UK Secretary of State for Constitutional Affairs agreed“International Identity Frameworks” with each Crown Dependency. These

99
100

101
102

30

See Statement to be made by the Minister for External Relations on Sunday 27th December 2020
See, for example, the UK/Japan Agreement for a Comprehensive Economic Partnership which waspresented to the UK Parliament in October 2021.
Justice Committee, Crown Dependencies: developments since 2010, p28.
Justice Committee, Crown Dependencies: developments since 2010, p29.

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The Crown Dependencies

were intended to clarify the constitutional relationship with regard tointernational relations.
The Frameworks include express acknowledgement that, in the context of the
UK’s responsibility for the international relations of the Crown Dependencies,
it is understood that:•

the UK will not act internationally on behalf of the Crown Dependencies
without prior consultation;•

the UK recognises that the interests of the Crown Dependencies may
differ from those of the UK, particularly in respect of the parties’
relationship with the EU;•

the UK will seek to represent any differing interests when acting in aninternational capacity; and•the UK supports the principle of the Crown Dependencies developing
further their international identities. 103

The Justice Committee’s 2010 report observed that where the interests of the
UK and the Crown Dependencies conflicted in international terms, “the insulargovernments have a sense that their interests will always be subordinate tothose of the UK”. 104 It therefore recommended that in:cases of conflict, the Ministry of Justice must endeavour to find a mechanism
for representation which will faithfully present and serve the interests of bothparties. 105

The UK Government, however, rejected this proposal, arguing that the Crown
Dependencies were “not sovereign States and cannot represent themselves”:
We do not think that it would be appropriate for the Crown Dependencies’
position to be separately represented in international negotiations. It would beunrealistic to expect a UK official to put the interest of a Crown Dependency
above that of the UK and in extreme circumstances this may hamper the abilityof the UK to operate effectively on the international stage. Where international
issues do engage the Crown Dependencies’ interests their views can be taken
on board as the UK line is developed. 106

Crown Dependencies, however, went on to engage in extensive bilateral andmultilateral international activity. The Government of Jersey, for example,
published a Global Markets Strategy for the 2020-23 period. This outlined its
efforts “to broaden and deepen Jersey’s governmental, political andcommercial relationships with priority jurisdictions” outside the European
Union.

103
104

105
106

31

See, for example, Framework for developing the international identity of Jersey.
Justice Committee, Crown Dependencies, p12. An earlier Justice Committee inquiry had examined
UK representation of the Crown Dependencies during the Icelandic banking crisis.
Justice Committee, Crown Dependencies, p31.
Justice Committee, Crown Dependencies: developments since 2010, p25.

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4.5

Overseas offices
The Channel Islands Brussels Office was opened in 2011 to:promote the interests of the Channel Islands in Europe, to represent theChannel Islands to the EU institutions, and to advise the governments ofGuernsey and Jersey on EU policy issues.

The Isle of Man Government Brussels Office also opened in 2011 with a similar
remit, while the Bureau des Îles Anglo-Normandes promotes the interests of
the Channel Islands in France.
There is also a Government of Jersey London Office, but no equivalent for
Guernsey or the Isle of Man.

32

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5

Useful websites and further reading

Isle of Man Government: www.gov.im
Isle of Man Parliament: www.tynwald.org.im
The States of Jersey: www.gov.je
Government of Guernsey: www.gov.gg
The States of Alderney: www.alderney.gov.gg
Sark Chief Pleas: www.gov.sark.gg
Royal Family: https://www.royal.uk/crown-dependencies
UK Government:
Crown Dependencies TeamInternational and Rights Directorate
Ministry of Justice
102 Petty France
London SW1H 9AJ
Email: crown.dependencies@justice.gov.uk

Publications
Darryl Ogier, The Government and Law of Guernsey, St Peter Port: States of
Guernsey, 2005
Derek Winterbottom, Governors of the Isle of Man, Douglas: Manx Heritage
Foundation, 1999
HMSO, Part XI: The Channel Islands and the Isle of Man, in Royal Commission
on the Constitution 1969-1973 Volume I Report, Cmnd 5460, October 1973,
pp405-66

33

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