Our Exchange of Information Policy Team recently published new guidance about the UK’s Automatic Exchange of Information (AEoI) agreements with other countries. We are offering you a great opportunity to find out more about the new rules, and what they could mean for your clients.
The agreements between the UK and other countries to exchange financial accounts information form part of the global strategy to combat offshore tax evasion. More and more countries are signing up to share information which will increase the effectiveness in tackling evasion.
Businesses that qualify as financial institutions must report specified information by 31 May under the agreements. A financial institution is not just a bank or a building society - it also covers insurers, wealth and investment managers, trusts and some charities.
If your clients may be affected please review the guidance now to see whether they need to register and report.
Financial institutions will have to carry out due diligence checks on all their account holders, which includes bank or similar accounts, investment accounts, insurance contracts, and debt/equity interests in trusts and other investment entities. The checks identify whether the account holder is tax resident in the UK. Businesses with account holders who are tax resident outside the UK, may be required to report this information to HMRC so it can be shared with the relevant tax authority.
Both new and pre-existing accounts need to be checked.
HMRC is running an educational event aimed at SMEs and agents affected by AEoI. The event will include speakers from agents, industry and HMRC, and the opportunity for 1-2-1 ‘surgeries’ plus small group discussions on due diligence best practice.
The event will take place on 7 October 2016 in London. For more information or to register an interest in the event please email firstname.lastname@example.org.