What is FATCA and who does it affect?
The Foreign Account Tax Compliance Act (FATCA) is one of the governments measures to aid in the elimination of international tax avoidance. It was introduced to improve tax compliance by US citizens or those defined as ‘US Persons for tax purposes’.
Whilst it is part of US legislation, the information exchange arrangements between the US and UK authorities mean that this is now also part of UK law. As such, it affects all UK entities which manage financial assets and accounts outside of the US including financial organisations, companies, professional practices and Trusts.
This legislation is primarily concerned with US taxes, but even if you have no links to the US, you may still need to complete the requested declaration. There is nothing to worry about and we can help if you receive a notice to certify your status and advise you how to complete the forms.
Do you still have questions? Get in touch with our tax team to find out how they can help you.