system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: What power does the UK have over its overseas territories that are being used as tax havens (British Virgin Islands, Bermuda)?
gpt
Ordinarily, the overseas territories are self-governing and the UK government is only responsible for their defence and international relations. However, the UK does have sovereignty over the overseas territories  and could overrule the local government or remove it entirely and impose direct rule. They did this in the Turks and Caicos Islands in 2008 in response to serious corruption in the local government, so it's not a hypothetical "technically they have that power but it's a historical oddity that they could never really use", but it would still be a last resort.