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HMRC internal manual

International Exchange of Information Manual

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HM Revenue & Customs
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Financial Accounts: Introduction

Financial Accounts: Introduction

A financial account is an account maintained by a Financial Institution. Only accounts that fall within any of the 5 categories of financial account defined by the various automatic exchange of information agreements need to be reviewed. Where such an account is held by a Reportable Person [see IEIM402010] it becomes a Reportable Account [see IEIM401520].

The 5 categories of financial account that need to be reviewed are:

 

#### Accounts #### Financial Institution that is Generally Considered to Maintain Them
   
Depository Accounts The Financial Institution that is obligated to make payments with respect to the account (excluding an agent of the Financial Institution).
Custodial Accounts The Financial Institution that holds custody over the assets in the account.
Equity and debt interests in investment entities. The Investment Entity that maintains the equity or debt Interest.
Cash Value Insurance Contracts The Financial Institution that is obligated to make payments with respect to the contract.
Annuity Contracts The Financial Institution that is obligated to make payments with respect to the contract.

 

Certain financial accounts are seen to be low-risk of being used to evade tax and are specifically excluded from needing to be reviewed. Details of these excluded accounts are at [see IEIM401720].

The definition of a financial account does not extend to shareholdings on an issuer’s share register nor debenture/loan stock holdings (including shareholdings which have been the subject of an acquisition, as a result of which the original share register no longer exists). However shareholdings and loan/debenture stock holdings by a Financial Institution can be ‘financial instruments/contracts’ and are reportable if held in a Custodial Account.