FATCA and the United Kingdom

133 thoughts on “FATCA and the United Kingdom”

1. Silver & Co – “U.S. Tax Seminar in London: The impact of the 15.5% Repatriation & GILTI taxes on expats in England”

   Thursday May 10, 2018 Time: 09:30 – 12:00

   Place: Theobold room. Monticello House
   45 Russell Square, London

   “Registration
   London event is free but advance registration is required. To register, send email to info@silvercolaw.com ”
   https://www.silvercolaw.com/blog/u-s-tax-seminar-in-london-the-impact-of-the-15-5-repatriation-gilti-taxes-on-expats-in-england

2. “The Impact of the Repatriation Tax on American Business Owners in the UK”

   http://www.theamerican.co.uk/pr/ea-Repatriation-Tax-American-Business-Owners-UK.php

3. “The Issue Of ‘Accidental Americans’ And What The EU Is Doing To Help”
   https://www.northeastlabour.eu/issue-‘accidental-americans’-and-what-eu-doing-help

   Party political, but it shows the AAA’s admirable campaign is having an impact well beyond France.

4. For those in this MEP’s area ( https://www.northeastlabour.eu/jude-kirton-darling North East of England ), I found this statement of support for ‘Accidental American’ EU citizens/residents;
   “..Jude Kirton-Darling MEP, who sits on the Petitions Committee in the European Parliament where these issues were first heard last year, has supported the petitions and wants to see a commitment across the whole of the EU to addressing the problem that has caused so much hardship to some EU citizens.

   Labour MEPs will continue to support Accidental Americans in Europe and their families in the parliament-wide discussion which will take place during the plenary session this July.”
   https://www.northeastlabour.eu/issue-%E2%80%98accidental-americans%E2%80%99-and-what-eu-doing-help

5. https://www.cambridge-news.co.uk/news/cambridge-news/grandmother-toddler-dollars-usa-14873554

6. From Lehmann crash to FATCA (inter alia): Private Banker International looks back:

   “Taking stock of the crisis ten years on”
   https://www.verdict.co.uk/private-banker-international/analysis-and-opinion/taking-stock-of-the-crisis-lehman-brothers-10-years-on/

7. http://www.theamerican.co.uk/pr/ne-FATCA-Question-In-Commons.php
   ‘FATCA Question in House of Commons
   A Parliamentary question raised the topic of Accidental Americans in the UK’
   Published on December 19, 2018

   and, the parliamentary question;
   https://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2018-12-10/200664/

8. Might be of interest to look through these results too;
   https://beta.parliament.uk/search?q=+FATCA

9. https://twitter.com/FixTheTaxTreaty/status/1095880148530823168

   UK Government Issues Further Comments on FATCA
   Mel Stride MP wrote a letter to Preet Kaur Gill MP on the issue
   Published on February 12, 2019

   https://www.theamerican.co.uk/pr/ne-Further-HM-Treasury-Response-FATCA

10. ‘United States, U.K. Sign Agreement to Amend FATCA-IGA’
    https://news.bloombergtax.com/daily-tax-report-international/united-states-u-k-sign-agreement-to-amend-fatca-iga?utm_source=rss&utm_medium=DINW&utm_campaign=00000169-3594-dd24-abff-37bc86c10000

    referring to;
    https://www.treasury.gov/resource-center/tax-policy/treaties/Documents/RelatedAgreement-UK-2.pdf

11. I hazard a guess that this:

    http://isaacbrocksociety.ca/fatca-and-the-united-kingdom/comment-page-5/#comment-8633735

    is an adjustment necessitated by changes recently announced by the IRS and described by this:

    https://www.lexology.com/library/detail.aspx?g=2b27b9c8-e25f-4afb-94e1-f282fd59f9ba

    ICBW

12. Guess confirmed:

    “Ireland-U.S. Deal May Spare Investors Global Tax Reporting Pain”

    https://news.bloombergtax.com/daily-tax-report-international/ireland-u-s-deal-may-spare-investors-global-tax-reporting-pain

    Investors in certain funds in Ireland would be spared a 30 percent withholding tax and onerous reporting requirements, under a reworked offshore account-reporting agreement with the U.S.

    The agreement addresses a major question for investors and fund managers that the Internal Revenue Service left unanswered in final Foreign Account Tax Compliance Act rules (T.D. 9852). The rules, released March 21, tell investors how to prove that they have been following the rules of the sweeping account-reporting regime, but Ireland was among nine countries that lacked the necessary reporting instructions for alternative funds structured as partnerships.
    [..]
    Renegotiating isn’t unprecedented. The U.K. entered into an updated agreement with the U.S. in February.

13. Thus showing that renegotiation of the IGAs is feasible.

14. As per http://isaacbrocksociety.ca/fatca-and-the-eu/comment-page-22/#comment-8633754, another crunch moment for the IGAs seems likely to arrive when/if banks start losing FATCA-compliant status because of missing SSNs/TINs.

    An opportunity, perhaps, to petition the EU specifically to consider the damage done to EU banks and to EU citizens by the impossible demands of the current IGA1 due diligence; and also to consider in addition the gratuitous extra damage done to EU citizens by allowing banks to ignore the minimum-balance.

    If the EU Parliament were to adopt a resolution recommending changes, it wouldn’t be binding on the Council or the Commission, but it could increase the pressure from the Commission for the US to drop FATCA and sign up to CRS instead.

15. The exemption from having to collect SSN/TIN was granted a few years ago because banks were struggling to obtain this information from customers. The exemption supposedly runs out in 2020, but I would not be surprised if it were extended again for a few years because it’s not like the US government has done anything to make it easier to obtain SSNs from abroad.

16. Yes, could be, but see the letter linked to in the post at http://isaacbrocksociety.ca/fatca-and-the-eu/comment-page-22/#comment-8633754

    The banks are pleading for a permanent solution, and threatening account closures. I personally am sceptical that they could get away with closing an account if the accountholder filed a complaint, but of course most accountholders, for various reasons, probably won’t do that.

17. Please Retweet/Like:

    @USAccidental Thanks @PreetKGillMP for support

    for a letter to Boris Johnson to attend to the plight of Accidental Americans in the U.K.

    Ends:

    My constituent would like you to outline your plans for Accidental Americans as a former Accidental yourself. Will you take sympathy with the plight of my constituent and many more that fall into this category and urge the United States of America to act on this unfair policy.

    https://twitter.com/USAccidental/status/1159849026981961728?s=20

18. @JC
    Boris Johnson was approached by various groups to expose the plight of Accidental American citizens some time ago when he was having his IRS problems. In a press statement he refused to speak out further on this matter after his ‘settlement’ with the IRS. Boris Johnson looks out only for himself.

19. Boris Johnson is a self-proclaimed champion of U.K. sovereignty. This is a matter of sovereignty.

    Perhaps now that he is PM he might feel in a better position to do something. No doubt in interviews now and into the future he will likely be asked about his former U.S. citizenship.

    What may divert him now: Brexit, and post Brexit signing a free trade deal with the U.S. After that….

20. @JC
    I do not think sovereignty is his driving force.
    According to his family Boris was a Europhile up until he saw the opportunity to achieve his ambition to become PM and jumped on the Brexit bandwagon.
    His actions will be based on his relationship with the US and how desperate he will be for a trade deal. He has little leverage and who knows what deal he got from the irs to keep him quiet . It was evident when you compare his original outburst to his post settlement self proclaimed silence that a deal was done.
    For the sake of Americans abroad I will be happy to be proven wrong but I would not hang my hopes on this vacuous opportunist .

21. @JC
    UK sovereignty will be mortgaged in the US.
    Read what Larry Summers has to say
    https://amp.businessinsider.com/larry-summers-us-will-exploit-uk-in-post-brexit-trade-talks-2019-8

22. I’d wager that Boris is out of office before anyone at No. 10 sees that MP’s letter.

23. Boris Johnson wants to see his allies – especially since leaving the EU and those allies.

24. sorry- not “see” his allies, but KEEP his alliance with America

25. @polly
    Henry Kissinger once said
    “America has no permanent friends or enemies, it has only interests”
    I am sure if Boris manages to survive as PM he will soon find out that this “special relationship “ is only one sided.