HMRC has now published in final form its International Exchange of Information Manual (‘IEIM’). The IEIM incorporates in one place HMRC’s guidance on FATCA, the OECD’s Common Reporting Standard (‘CRS’), the EU’s Council Directive on Administrative Cooperation (‘DAC’) and the UK’s Inter-Governmental Agreement (‘IGAs’) with the Crown Dependencies and Overseas Territories (‘CDOT’).
Key changes to the draft manual published in September 2015 include the following:
- New guidance on whether charities are investment entities.
- Revisions to the trusts guidance. In line with the FATCA guidance, a trust must be professionally managed by a financial institution to qualify as a managed investment entity.
- Partly reflecting the FATCA guidance notes, new commentary on when collective investment schemes are treated as financial institutions or non-reporting financial institutions.
- Again partly reflecting the FATCA guidance notes, new commentary on entities that are non-reporting financial institutions, such as government bodies and pension funds. Differences between the reporting requirements under the different regimes are highlighted.
- New commentary on the implications of repealing the EU Savings Directive.
- Updated guidance about the transition for CDOTs currently reporting under the IGAs to report under CRS.
- Revised guidance on the due diligence requirements for the balance or value of accounts. The guidance no longer provides that if the balance of an account is negative, the amount that should be reported is zero.
- Revised guidance on the self-certification requirements for new accounts. In respect of new accounts, self-certification must be obtained within 90 days of opening a new account.
For a link to the IEIM, please click here.
For a link to more background information regarding FATCA and CRS please click here.