News

Trustees beware: new FATCA rules may affect you

  • September 29, 2014
  • By Hunters Law

The Foreign Account Tax Compliance Act (‘FATCA’) originates from the US, but will soon have a wide impact here in the UK. FATCA was introduced to combat tax evasion by US taxpayers using foreign accounts by imposing a reporting requirement on ‘financial institutions’ outside the US.

From 1st January 2015, all UK resident ‘financial institutions’ must supply information to HMRC for them to pass on to the US Internal Revenue Service.

Many of us may immediately think of banks or investment managers as being financial institutions – but not trusts.  However, a large number of UK resident trusts will be ‘financial institutions’ for the purposes of FATCA, whether or not any of its beneficiaries are US taxpayers; and the trustees of those trusts will have FATCA registration and reporting requirements, which they must comply with quickly.  Failure to comply when required to do so will result in a withholding tax of 30% being deducted from US source income, and it is likely that professional investment managers will refuse to act for trusts which are not FATCA-compliant.

It is therefore important for the trustees of any UK resident trust to ascertain whether or not they have FATCA registration or reporting requirements as soon as possible.

For more information on FATCA and how it might affect you, please contact the partner at Hunters having responsibility for your legal matters, or (for new enquiries) please contact a partner in the Private Client Team.

Related News

Feb 09, 2021
Molly Wills discusses The Office of Tax Simplification’s First Report on Capital Gains Tax, in Private Client Business
Jan 06, 2021
Molly Wills discusses The Office of Tax Simplification’s review of Capital Gains Tax
Nov 30, 2020
Julia Richards examines section 33 of the Wills Act 1837 in WealthBriefing
Nov 13, 2020
Julia Richards examines section 33 of the Wills Act 1837 in the case of Re estate of Ellen Beatrice Brackstone [2020]
Oct 29, 2020
Julia Richards examines Section 33 of the Wills Act 1837
Oct 28, 2020
Daniel Watson examines Wills being witnessed remotely by video-link in Taxation
Sep 21, 2020
Hunters recognised as one of the 2020 eprivateclient Top Law Firms
Sep 04, 2020
Matthew Yates comments on video wills in the Financial Times
Aug 11, 2020
Daniel Watson examines the government’s newest legislation regarding Wills in Lawyer Monthly
Aug 04, 2020
Matthew Yates examines the recent change to the law of organ donation in England in STEP Journal

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)

WARNING: Website falsely claiming to be Hunters Law

4 March 2021

The website 'hunterslawllp.com' is operating, falsely claiming to be Hunters Law. This website has been created to mirror the genuine site, although contact details including telephone number and email addresses have been changed, and the SRA verification badge does not work.

We have also been made aware of a series of faxes circulating, purporting to come from ‘barrister’ Dominik Opalinski, advising of an unclaimed inheritance of $16.95M, which feature the same website address. Dominik is a genuine partner of the firm, but is not a barrister.

We have reported this to the SRA, and contacted the website domain hosts to request its urgent removal. If you receive correspondence of a similar nature to that described, please contact us directly by reliable and established means.