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HMRC internal manual

International Exchange of Information Manual

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HM Revenue & Customs
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Notification requirement: Controlled persons overseas: Obligation on overseas persons

Notification Requirement: Controlled parties overseas: Obligation on overseas persons

Reg.12E

The requirement to notify specified clients may apply to overseas persons.  An overseas person is a body corporate or partnership who would be a Specified Financial Institution or Specified Relevant Person if they were in the UK.

Where an overseas person is controlled by a UK Specified Financial Institution or Specified Relevant Person that is a body corporate, the UK person must take all such steps as are reasonably open to them to ensure that the overseas person complies with the rules.

 

The obligation regarding overseas persons sits with the UK body corporate that controls them, but the judgement on whether a situation could mean they have no reason to believe they have any UK tax resident customers must be made by the overseas person.  Although the UK party can advise the overseas person of this guidance and how the rules apply, in order to meet their obligations the UK party would still need to invite the overseas person to make that judgement and meet the other obligations.

Under the client notification regulations, there are no obligations on overseas persons not controlled by a UK Specified Financial Institution or Specified Relevant person that is a body corporate.