FATCA guidance released by the UK Tax Authority - 31/12/2012 |
FATCA guidance released by the UK Tax Authority
On 18 December 2012, the UK Tax Authority (HMRC) has issued guidance notes and draft regulations implementing the intergovernmental agreement (IGA) in the UK. They have interpreted a number of points from the IGA (in collaboration with the US government) and many of the points will be relevant for other jurisdictions that introduce IGAs.
The draft guidance sets out in more detail the definition of financial institution and financial account and considers relevant due diligence procedures to undertake once these classifications have been made.
A summary of the key features of the guidance for the UK Financial Institutions and fund industry are as follows:
Financial institutions
The definition of investment entity will include collective investment vehicles, fund managers, investment managers, fund administrators, transfer agents, depositories and trustees of unit trusts. However only collective investments vehicles (i.e. funds), will be required to report on financial accounts.
In all other instances (e.g. for fund managers, investment managers, fund administrators …), where an entity is an investment entity solely because of its relationship with a collective investment vehicle, no reporting will be required.
Financial accounts
The only financial accounts relevant to a collective investment vehicle will be that of debt or equity interests in the collective investment vehicle.
Registration process
No detail has been given regarding registration procedures within the draft guidance. However the IRS registration portal is expected to open in the first half of 2013.
Irish Intergovernmental Agreement released
On 21 December 2012, Ireland and the United States signed an Intergovernmental Agreement (“IGA”) to improve international tax compliance with respect to FATCA. The agreement is substantially similar to the UK agreement including reciprocal reporting obligations for the United States.
Please find here attached the alert issued by our US colleagues regarding the IGA.
If you have any queries regarding the above, please do not hesitate to contact us.
We wish you a happy new year 2013..
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Operational tax news - FATCA update
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