• Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/9/2013

United Kingdom - Regulations implementing FATCA in the UK 

August 9:  Regulations to implement and bring FATCA into force in the UK were issued this week.

The regulations [PDF 86 KB] (dated 6 August 2013) set out requirements for UK financial institutions to begin their due diligence and reporting requirements under the U.S. Internal Revenue Code sections 1471-1474 (commonly referred to as FATCA).

In general, the UK FATCA-related regulations confirm that:

  • The effective date for the regulations is 1 September 2013.
  • Measures have been updated to conform with the delayed implementation milestones, pursuant to IRS Notice 2013-43.
  • The investment entity test is determined by reference to regulation 14F of Part 2B of the Authorised Investment Funds (Tax) Regulations 2006(d).
  • A holding company test has been adjusted to include a new test based on a “qualifying relationship” which in turn is based on being connected within the meaning of section 1122 of CTA 2010.
  • The regulations require the identification of either the income tax or corporation tax residency of the account holder.
  • The tests for reportable transactions of UK financial institutions are included in the regulations.

Read an August 2013 report [PDF 195 KB] prepared by the KPMG member firm in the United Kingdom: Weekly Tax Matters (9 August 2013)

Also discussed in this KPMG report are the following topics:

  • OECD seeks views on aspects of transfer pricing
  • Updated HMRC Senior Accounting Officer guidance
  • HMRC meeting regarding stamp duty land tax group relief
  • House of Lords inquiry into corporate tax - report released
  • Office of Tax Simplification - review of employee benefits and expenses
  • Offshore employment intermediaries - draft PAYE legislation
  • Tax-free childcare - consultation on design and operation published

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