The United States (US) Department of the Treasury and United Kingdom's (UK's) HM Treasury on September 14 announced the signing of the first intergovernmental agreement (the US-UK IGA) under the Foreign Account Tax Compliance Act (FATCA). As anticipated, the agreement specifically identifies the UK institutions and products that are seen as presenting a low risk of being used to evade US tax and, therefore will be effectively exempt from FATCA requirements.
The US-UK IGA closely follows the Model Agreement issued in July 2012 by the governments of France, Germany, Italy, Spain, the UK, and the US. See Global IRW Newsbrief: Treasury releases model intergovernmental agreement for implementing FATCA for more information on the Model Agreement.
