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Anguilla ( / æ ŋ ˈ ɡ w ɪ l ə / ang- GWIL -ə ) 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, 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
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 .
The name Anguilla is an anglicised or latinate form of earlier Spanish anguila , French anguille , or Italian anguilla , all meaning " eel " in reference to the island's shape. For similar reasons, it was formerly known as Snake or Snake Island .