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Technical updates // 18/02/2015

Understanding The UK Foreign Account Tax Compliance Act

Under the UK Foreign Account Tax Compliance Act (UK FATCA), financial
institutions in Crown Dependencies and Overseas Territories have until 30
September 2016 to provide HMRC with information on UK-resident account
holders. Although the deadline is 18 months away, it relates to reportable
accounts in 2014 and 2015, so UK residents are being advised to consider making
the necessary disclosures now.

UK resident non-domicillaries (RNDs) – broadly individuals whose permanent home is outside the UK – do not have to declare or pay UK tax on income earned overseas. They can elect instead to pay an annual remittance basis charge if they have lived in the UK for a certain number of years. Under UK FATCA, individuals who pay the remittance basis charge can also elect to have an alternative reporting regime (ARR) apply to their offshore funds.

Read the tax update in full here.

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