LONDON (Bloomberg) — Britain and Guernsey have agreed to share more banking information as Prime Minister Gordon Brown seeks to crack down on UK residents who avoid taxes.

"This new tax information exchange agreement represents a significant step in our efforts to counter and prevent tax evasion and avoidance," UK Financial Secretary Stephen Timms said in a statement in London.

Brown is working to close loopholes that benefit some of Britain's wealthiest residents after pressure from unions and lawmakers to curb abuses. Last week the Revenue and Customs department said it will outlaw an avoidance arrangement that funnels employment income through offshore trusts.

Guernsey, which sits in the English channel about 30 miles off the north coast of France, is self-governing Crown Dependency, meaning it is independent from Britain though Queen Elizabeth II is officially its head of state.

Like neighbouring Jersey, and the Isle of Man, it is a major banking centre that offers lower tax rates than most industrialised countries.