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The International Tax Compliance (Amendment) Regulations 2020

S.I. 2020/438 · Made 20 April 2020

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Taxes

Made 20th April 2020

Laid before the House of Commons 21st April 2020

Coming into force 13th May 2020

The Treasury make these Regulations in exercise of the powers conferred by section 222 of the Finance Act 2013f1:

Annotations to the whole text

Footnotes

f1

2013 c. 29; section 222 was amended by section 50 of the Finance (No. 2) Act 2015 (c. 33) but the amendments are not relevant to these Regulations.

Contents

  1. 1Citation and commencement
  2. 2Amendments to the International Tax Compliance Regulations 2015
  3. 3Transitional provision
  4. Signature
  5. Explanatory note

1Citation and commencement

These Regulations may be cited as the International Tax Compliance (Amendment) Regulations 2020 and come into force on 13th May 2020.

2Amendments to the International Tax Compliance Regulations 2015

(1)

The International Tax Compliance Regulations 2015f1 are amended as follows.

(2)

In regulation 1(3)(b)(i), for “16th May 2019” substitute “19th April 2020”f2.

(3)

In regulation 3(4A)(a), at the beginning insert “subject to regulation 24(3)”.

(4)

In regulation 24—

(a)

in the table in paragraph (2), in the column headed “the CRS”—

(i)

at the beginning of the entry for “new account” insert “subject to paragraph (3)”, and

(ii)

at the beginning of the entry for “pre-existing account” insert “subject to regulation 3(4A)(a) and paragraph (3)”, and

(b)

after paragraph (2) insert—

“(3)

In respect of the accounts listed in paragraph (4)—

(a)

“new account” means a financial account maintained by a reporting financial institutionf3 opened on or after 13th May 2020;

(b)

“pre-existing account” means—

(i)

a financial account maintained by a reporting financial institution as of 12th May 2020, or

(ii)

a financial account within Section VIII(C)(9)(b) of Annex 1 of the DACf4, but in the application of that provision the references to “subparagraph C(9)(a)” are to be read as references to paragraph (i) of this sub-paragraph.

(4)

The accounts are—

(a)

non-registered pension arrangements where the annual contributions are limited to £50,000 and funds contributed cannot be accessed before the age of 55 except in circumstances of serious ill health;

(b)

Premium Bonds issued by the UK National Savings and Investments;

(c)

Fixed Interest Savings Certificates issued by the UK National Savings and Investments; and

(d)

Index Linked Savings Certificates issued by the UK National Savings and Investments.”.

(5)

In Schedule 2, omit paragraphs 2, 6, 8 and 9.

3Transitional provision

(1)

For the purposes of the International Tax Compliance Regulations 2015, in relation to an account that by virtue of regulation 2(5) ceases to be an excluded account, the calendar year 2020 is treated as beginning on 13th May 2020 and ending on 31st December 2020.

(2)

Where in consequence of paragraph (1) it is necessary to apportion an amount for the calendar year 2020 to the period ending immediately before 13th May 2020 and the period beginning with that date, it is to be apportioned—

(a)

on a time basis according to the respective length of the periods, or

(b)

if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.

Signature

David Rutley

Maggie Throup

Two of the Lords Commissioners of Her Majesty’s Treasury

20th April 2020

Explanatory note

(This note is not part of the Regulations)

The Regulations amend the International Tax Compliance Regulations 2015 (“the principal Regulations”) which give effect to agreements and arrangements reached between the United Kingdom and other jurisdictions to improve international tax compliance.

Regulation 2(2) extends the application of the principal Regulations to arrangements entered into by the United Kingdom for the exchange of financial account information with other jurisdictions up to 19th April 2020, the date before the Regulations are made.

Regulation 2(5) omits various accounts from the category of excluded accounts. Regulation 2(4)(b) amends the definitions of “new account” and “pre-existing account” in relation to those accounts so that these terms are defined by reference to the date that those accounts ceased to be excluded accounts. Regulation 2(3) and (4)(a) make consequential amendments.

Regulation 3 makes a transitional provision for the calendar year 2020 in relation to accounts which were previously excluded accounts.

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 https://www.gov.uk/government/publications/tax-administration-regulations-to-implement-the-uks-automatic-exchange-of-information-agreements. It remains an accurate summary of the impacts that apply to this instrument.