Budget 2013 UK FATCA

Budget 2013 UK FATCA.

UK FATCA i.e. Offshore Tax Sharing Information

The US originally launched a global requirement for investment companies to share some tax, investment and income information for its citizens with money invested around the World.

In short, information exchange on certain items enabling the US to gather data to enable them to tax people properly and target those avoiding tax.

FATCA is the Foreign Account Tax Compliance Act.

UK FATCA

Announced in the budget, the UK has now provisionally agreed tax information sharing deals with offshore havens Isle of Man, Guernsey and Jersey. This means that limited information will be supplied to UK authorities about investments and tax held in those states. Other offshore havens are thought to be in line to agree a UK FATCA in the Caribbean and other tax privileged jurisdictions.

UK Tax Evasion Weapons

The UK already has the EU Savings Directive which forces banks to share information with tax authorities or pay a withholding information tax

We now have the start of a UK FATCA with other information being shared ontax and income disclosure offshore