|UK Banks Will Soon Begin Automatic Reporting of Foreign Accounts|
UK financial institutions will from 1 January 2016 be required to compile information about all bank accounts, and from 2017 report it to HM Revenue and Customs. The information will then be automatically relayed to appropriate foreign governments.
The new regime is set out in regulations published today for consultation. They result from the UK's participation in negotiations between the UK and various overseas jurisdictions to adopt the OECD common reporting standard on the automatic exchange of financial account information. This was later approved by the G20 group of countries as the global standard. The full version was released on 21 July this year, with the addition of standard format requirements for secure transmission of data.
The UK domestic regulations will provide the legal basis for UK financial institutions to comply with their obligations under these agreements. They will require financial institutions to start capturing information on all accounts in existence as at 31 December 2015, and all new accounts opened on or after 1 January 2016. Reporting will start in 2017.
The consultation is open until 22 October. The final regulations incorporating any amendments will be published by the end of the year, with a view to bringing them into force on or before 31 March 2015.
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on Aug.1, 2014