On 18 December 2012, HM Treasury and HMRC released the draft International Tax Compliance (United States of America) Regulations 2013 (“UK Draft Regulations”) to implement the Agreement to Improve International Tax Compliance and to Implement FATCA (“UK-US IGA”). Accompanying the UK Draft Regulations was the release of the Draft Guidance Notes (“UK Draft Guidance”) and a Summary of responses to the consultation which sought views on how the Government intends to legislate in order to deliver the commitments made in the UK-US IGA. The UK Draft Guidance provides HMRC‟s interpretation of the procedures that a financial institution within the UK will need to follow to identify and report „Specified US Persons‟ beginning 1 January 2014. UK guidance notes are intended to assist financial institutions in complying by providing explanations and examples for financial institutions to follow, but these notes do not form part of the UK legislation.
This Newsbrief provides an overview of the key clarifications and gaps and includes an appendix with detailed analysis of, the UK Draft Guidance. A summary of responses to the consultation will be provided in a future Newsbrief.