HMRC to use US FATCA reporting service

By in

HMRC in the UK has launched an online service for its financial institutions to register and report financial information on behalf of customers in accordance with US legislation as per the Foreign Account Tax Compliance Act (FATCA).
HMRC in the UK has launched an online service for its financial institutions to register and report financial information on behalf of customers in accordance with US legislation as per the Foreign Account Tax Compliance Act (FATCA).

‘With the adoption of FATCA rules, UK trusts and trustees must reconsider their status and make sure to be totally compliant with the new US regime of tax disclosure’ says George Hodgson, who is the Chief Executive of the Society of Trust and Estate Practitioners (STEP) in the UK.

On registering, individuals will be given a FATCA ID, plus an HMRC registration identification number for each financial institution they register. Financial institutions will also need to register with the US Internal Revenue Service (IRS), this is to be introduced by May 2015.

The FATCA scheme has been introduced to improve cases in the UK where the account holder is a non-financial foreign entity (NFFE) with more than 30 employees, or where the account holder, or any controlling person of an NFFE, has multiple tax residencies.

HMRC guidance states that a return should be submitted even if there are no accounts to report and warns that submissions must use the latest version of the HMRC scheme rather than the US scheme of IRS.