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UK Expat savers offshore accounts caught by Son of FATCA
| Published: | 8 Jul at 6 PM |
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Expat savers considered by HMRC to be tax-resident in the UK will now be forced to share their personal and financial details with the UK tax authority.
Following the UK’s signing up to FATCA, the UK Chanceller announced a similar arrangement between HMRC and the Crown Dependencies of Guernsey, Jersey and the Isle of Man. The three jurisdictions are most popular with UK expats due to their provision of offshore accounts.
The agreement, knows as Son of FATCA and based on the US model, is aimed at curving tax evasion and improving offshore financial transparency. In future, any expat considered to be tax-resident in the UK will be forced to comply with the new requirements and agree that their private details be passed on to the HMRC.
From the beginning of this month, expats applying for offshore accounts in the above jurisdictions will be asked additional questions in order to determine whether or not they are UK tax-resident. Those who qualify as tax-resident will need to provide their National Insurance numbers.
American or European tax-resident expats will need to give their tax ID numbers, and their financial and personal details will be disclosed to the relevant tax authorities in their countries of origin. Although UK expats generally do not pay UK tax on their overseas income, US citizens living abroad are liable to pay tax in their home country on moneys earned anywhere in the world.
Following the UK’s signing up to FATCA, the UK Chanceller announced a similar arrangement between HMRC and the Crown Dependencies of Guernsey, Jersey and the Isle of Man. The three jurisdictions are most popular with UK expats due to their provision of offshore accounts.
The agreement, knows as Son of FATCA and based on the US model, is aimed at curving tax evasion and improving offshore financial transparency. In future, any expat considered to be tax-resident in the UK will be forced to comply with the new requirements and agree that their private details be passed on to the HMRC.
From the beginning of this month, expats applying for offshore accounts in the above jurisdictions will be asked additional questions in order to determine whether or not they are UK tax-resident. Those who qualify as tax-resident will need to provide their National Insurance numbers.
American or European tax-resident expats will need to give their tax ID numbers, and their financial and personal details will be disclosed to the relevant tax authorities in their countries of origin. Although UK expats generally do not pay UK tax on their overseas income, US citizens living abroad are liable to pay tax in their home country on moneys earned anywhere in the world.
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