Contributed By Travers Smith LLP
The UK has entered into a Model 1 Intergovernmental Agreement with the US, which implements FATCA in the UK. Compliant UK funds will not be subject to, nor will they have to operate, any FATCA withholding taxes. The OECD Common Reporting Standard (CRS) and the EU Directive on administrative co-operation in the field of taxation (DAC) have also been implemented into UK law. Relevant UK funds have to carry out due diligence and reporting on their investors under both regimes (FATCA and CRS/DAC), and will then have to report information about these investors to the UK tax authority.