This briefing note is only intended as a general statement of the law and no action should be taken in reliance on it without specific legal advice.

UK Resident Non-Doms - Act by 30 May
Andrew Goldstone
21 May 2015

UK Resident Non-Doms - Act by 30 May

UK-Resident Non-Doms -  Act by 30 May in relation to offshore accounts in crown dependencies and overseas territories ("CDOT"S).

In 2014 the UK government entered into inter-governmental agreements ("IGAs") with the CDOTs to require automatic reporting by their financial institutions (i.e. banks, asset managers, insurers and custodians) to HMRC of monies held for UK tax resident individuals. This is commonly known as UK FATCA, after the USA version. The idea is that any UK resident and domiciled individual will have already reported any income or gains arising from such monies (and their source) to HMRC and this would be a double check to allow HMRC to secure compliance.

However UK resident, non-domiciled individuals are only obliged to give details of such income and gains to HMRC if these were remitted to the UK and they can otherwise lawfully hold income etc. offshore tax free.

Accordingly, Annex IV of the IGAs provides for an alternative reporting regime ("ARR") for UK non-doms who are claiming the remittance basis in their self assessment returns.  The information to be supplied by the financial institution to HMRC is less under ARR than it otherwise would be.  For ARR to apply, the financial institution must decide to apply it by 30 May 2015 (the 30 May after the first tax year for which the regime applies - i.e. the 2014/15 tax year).  But for it to apply, the individual also has to elect and notify the financial institution by 30 May 2015.  This is then supplemented by a further confirmation that the tax return has been submitted claiming the remittance basis which is due by the following 28 February.

So if you are at all concerned about the confidentiality or privacy of your affairs in the CDOTs, and believe HMRC should not see more information about you than is necessary, start contacting your financial institutions now.