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The UK-US Agreement
The government (along with France, Germany, Italy, and Spain) and with the support of the European Commission took part in joint discussions with the US government to explore an intergovernmental approach to The Foreign Account Tax Compliance Act (FATCA), supporting the overall aim to combat tax evasion, while reducing risks and burdens on financial institutions. A model intergovernmental agreement (IGA) was developed and published in July 2012.The UK and the US signed an IGA - the ‘UK-US Agreement to Improve International Tax Compliance and to Implement FATCA’ - in September 2012 (see the ‘Current documents’ section below). Annex II of the IGA was amended by an exchange of notes between the 2 governments dated 3 June and 7 June 2013 (see the ‘Current documents’ section below).
The IGA reduces some of the administrative burden of complying with the US regulations, and provides a mechanism for UK financial institutions to comply with their obligations without breaching the data protection laws.
On 12 July 2013 the US announced a delay of 6 months before the commencement of FATCA. The effect of this delay is that there will be no reporting with regard to 2013, and all current deadlines for undertaking due diligence etc will be pushed back by 6 months.
On 6 May 2014 the US announced amendments to the on-boarding processes for new entity accounts opened between 1 July and 31 December 2014. The UK won’t be adopting these amendments and UK financial institutions must comply with the UK regulations in order to meet their reporting obligations to HM Revenue and Customs (HMRC). Where UK financial institutions are required to obtain self-certification for a new customer these obligations will apply from 1 July 2014. This will maintain consistency between entity and individual on-boarding processes and the due diligence obligations for US and Crown Dependency/Gibraltar reporting purposes.
Previously published documents
You can find further detailed information from the links below.
Reporting to HMRC
Details on future agreements will be published on this page.