Explanatory note
(This note is not part of the Regulations)
The Regulations amend the International Tax Compliance Regulations 2015 which give effect to agreements and arrangements reached between the Government of the United Kingdom and other jurisdictions to improve international tax compliance.
The Regulations provide that the definitions for “financial institution” and “investment entity” for Foreign Account Tax Compliance Act (FATCA) purposes are drawn from the relevant US legislation. The Regulations also remove venture capital trusts and dormant accounts from the list of accounts that are not reportable, although financial institutions can elect to treat the latter as non-reportable accounts.
The Regulations add Ghana as a participating jurisdiction in relation to the Common Reporting Standard (CRS).
A Tax Information and Impact Note covering the International Tax Compliance Regulations 2015 was published on 18th March 2015 and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this amending instrument.