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Anguilla is a British overseas territory in the Caribbean. It is one of the most northerly of the Leeward Islands in the Lesser Antilles, lying east of Puerto Rico and the Virgin Islands and directly north of Saint Martin. The territory consists of the main island of Anguilla itself, approximately 16 miles (26 km) long by 3 miles (5 km) wide at its widest point, together with a number of much smaller islands and cays with no permanent population. The island's capital is The Valley. The total land area of the territory is 35 square miles (90 km2), with a population of approximately 13,500 (2006 estimate).
Anguilla has become a popular tax haven, having no capital gains, estate, profit or other forms of direct taxation on either individuals or corporations. In April 2011, faced with a mounting deficit, it introduced a 3% "Interim Stabilisation Levy", Anguilla's first form of income tax.