Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

International Exchange of Information Manual

From
HM Revenue & Customs
Updated
, see all updates

Notification Requirement: Controlled parties overseas: Who the overseas person will need to notify

Notification Requirement: Controlled parties overseas: Who the overseas person will need to notify

The overseas person will need to identify and notify individuals who are clients who:

  • They reasonably believe to have been UK tax resident at any time in the year to 30 September 2016, and in that period they either:
  • Provided the individual with a financial account in a participating jurisdiction or the US; or
  • Provided the individual with offshore advice or services with respect to their personal tax affairs.

 

HMRC will take into consideration cases where the overseas person has already sent some kind of notification to the client along the lines of that in the Regulations.

Where the overseas person is an SFI, unless they are either based‎ in a jurisdiction that has adopted an automatic exchange agreement requiring them to identify their UK tax resident clients, or where for another legal or regulatory reason they must collect details of tax residence from their clients, it will be very rare for them to have reason to believe their customers to be UK tax resident.

Where the overseas person is an SFI, and for legal or regulatory reasons they are prohibited from maintaining a financial account for UK tax residents, they can be taken to have no reason to believe that their customers are UK tax resident.

Mixed connections

The extension of the obligation will still apply where one of the UK and overseas persons is a Specified Financial Institution and the other is a Specified Relevant Person.