Foreign Account Tax Compliance Act (“FATCA”)
Legislation with a far reaching impact was enacted in the USA in 2010. The Foreign Account Tax Compliance Act (“FATCA”) is designed to ensure that US citizens, wherever in the world they are resident, are fully disclosing their worldwide income to the Internal Revenue Service (“IRS”).
Following an agreement between the UK and the US this legislation will form part of the UK rules. From 1 January 2015 the new rules will require UK financial institutions to send annual reports to HM Revenue and Customs (“HMRC”), which will be given to the IRS.
You should be aware that UK Trusts now also have additional reporting requirements under FATCA, which may require them to be registered with the IRS and report to HMRC. If you are the Trustee of any UK Trust (which we have not already contacted you about) then please let us know. If appropriate, we can then advise on the filing and registration requirements for that Trust.
For more information, please contact Caroline Le Jeune.