UK and International Tax news

International Tax Compliance (Client Notification) Regulations

Thursday 10th November 2016

The International Tax Compliance (Client Notification) Regulations came into force on 30 September 2016 and require financial institutions and certain advisors to identify individuals to whom notifications, as outlined in the regulations, must be sent on or before 31 August 2017 together with a covering letter from the financial institution or advisor using set wording provided by HMRC and the relevant links to guidance.

The Regulations apply to financial institutions [Specified Financial Institutions], as defined under the Common Reporting Standard, including banks, building societies, insurers, fund managers, wealth managers and investment entities and similar businesses.

They also apply to individuals and companies [Specified Relevant Persons] including tax agents, tax advisers, solicitors and financial advisers who, as part of their business, provide advice or services to individuals relating to offshore accounts, income or assets.

In particular, they apply to persons with UK resident clients in either the 2015/16 or 2016/17 tax years if such clients have been provided with financial advice or services, an overseas account, referred them for an overseas account, or referred them for advice or services overseas.

HMRC has also given further details on the requirements that apply to financial institutions and advisors, and penalties for non-compliance.

These regulations will have a significant impact on UK tax advisers and headquartered financial groups.  They will not however apply to UK branches of non UK financial groups.

If you would like further information on the above regulations and the notification letter , please contact Keith Rushen on 0207 486 2378.

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