HMRC publishes revised UK guidance on FATCA
On 31 May HMRC published its revised guidance and regulations for the Foreign Account Tax Compliance Act (FATCA).
FATCA is part of the United States Hiring Incentives to Restore Employment Act of 2010 which aims to combat tax evasion by US tax residents using foreign accounts.
The guidance clarifies that any entity registered as a charity with the Charity Commission of England and Wales, with HMRC for charitable tax purposes or registered as a charity with the Office of the Scottish Charity Regulator will be exempted from reporting under FATCA and will not be obliged to register with the US Internal Revenue Service (IRS). The same applies to any Community Amateur Sports Club if registered as such with HMRC. Other sports clubs should also be treated as non-financial institutions.
Community Interest Companies (CICs) should also be able to meet the criteria by qualifying as a local Financial Institution, or as a Non Financial Institution. The revised list of Deemed Compliant entities, which will be published soon, includes reference to CICs.
The guidance can be found at the following link: