HM Treasury and US Tax Authority release model agreement to implement FATCA in the UK and extend information sharing powers between the US and the UK

11 Sep 2012

HM Treasury (in conjunction with the governments of France, Germany, Italy and Spain – together the ‘FATCA Partners’) have published the terms of a model agreement (the ‘Model Agreement’) which they propose to enter into with the US government (the ‘IRS’) and which is intended to address concerns about FATCA compliance for financial institutions established in the FATCA Partner jurisdictions.

The Model Agreement is intended to allow UK (and other FATCA Partner) financial institutions to comply with their FATCA obligations in situations where domestic law (such as data protection) prohibits the necessary exchange of information. This is achieved by requiring the financial institution to pass relevant information to their tax authorities who in turn will pass it on to the IRS.

A link to the Agreement can be found here (http://www.hm-treasury.gov.uk/d/joint_intl_statement_fatca_260712.pdf)

A link to the joint statement can be found here (http://www.hm-treasury.gov.uk/joint_intl_statement_fatca_260712.htm?intEmailHistoryId=-1&intEmailListId=0&intEmailId=0&intExternalSystemId=0&intEmailHistoryId=778390&intEmailListId=133&intEmailId=60099&intExternalSystemId=1).

For our more detailed briefing, click here (http://www.herbertsmith.com/NR/rdonlyres/2E01527A-B8DB-413E-9A84-63CB6A3AB652/0/FATCAbriefingJuly2012.htm?intEmailHistoryId=778390&intEmailListId=133&intEmailId=60099&intExternalSystemId=1).