Page "History of the Cayman Islands" Paragraph 6

England took formal control of the Caymans, along with Jamaica, under the Treaty of Madrid in 1670 after the first settlers came from Jamaica in 1661-71 to Little Cayman and Cayman Brac.

These first settlements were abandoned after attacks by Spanish privateers, but English privateers often used the Cayman Islands as a base and in the 18th century they became an increasingly popular hideout for pirates, even after the end of legitimate privateering in 1713.

Following several unsuccessful attempts, permanent settlement of the islands began in the 1730s.

The Cayman Islands historically have been popular as a tax haven.

In November 1794, ten vessels, which were part of a convoy escorted by HMS Convert, were wrecked on the reef in Gun Bay, on the East end of Grand Cayman, but with the help of local settlers, there was no loss of life.

The incident is now remembered as The Wreck of the Ten Sail.

Legend has it that there was a member of the British Royal Family onboard and that in gratitude for their bravery, King George III decreed that Caymanians should never be conscripted for war service and Parliament legislated that they should never be taxed.

However, no real evidence has been found for this.