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HMRC internal manual

International Exchange of Information Manual

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HM Revenue & Customs
Updated
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Notifying clients about the Common Reporting Standard and related matters: Background

On 30 September 2016 changes were made to the International Tax Compliance Regulations 2015 (SI 2015/878) that created an obligation on certain types of business to tell their clients:

  • That HMRC will soon be getting data on overseas financial accounts
  • That there are opportunities to come forward about your overseas tax affairs, if you need to
  • About what could happen to those who don’t come forward

 

HMRC wants people to know that tax authorities around the world will soon be sharing massive amounts of data on financial accounts, and will be using that data to check that taxable income has been properly declared. 

In many cases, at the moment, financial institutions and advisers know more than HMRC about whether their clients have, or are likely to have, assets and income overseas.  Those industries should be making their clients aware of their obligations in respect of reporting their UK taxable income. In many cases this is already happening, but the Regulations ensure that it happens in a consistent way across the board.

This guidance will tell you whether you are one of types of business affected.

The amendments to the Regulations were made under the power inserted into section 222 of Finance Act 2013 by section 50 of Finance (No. 2) Act 2015.  The details of this can be found on the Summer Budget 2015 pages.