Helping you understand the Foreign Account Tax Compliance Act

‘Trusts are an effective way of securing wealth for future generations. We can help you make sure your trusts are managed properly and internationally compliant’

With the increase in global movement of workers, the US government is concerned that some US citizens are not declaring their financial interests to the US Internal Revenue Service (IRS). To counteract this the Foreign Account Tax Compliance Act has been introduced by the US and adopted by the UK. This affects trustees of many trusts even when the trust does not have US beneficiaries.

What is FATCA and do I need to do anything with my trust?

Under Foreign Account Tax Compliance Act, or FATCA as it’s commonly known, the UK along with a number of other countries have agreed to report on payments to all beneficiaries of certain trusts from their jurisdictions.

FATCA applies to entities not individuals. Trusts and family investment companies come within the definition of entities for the purposes of FATCA.

Trustees have several options on how they can manage their trust to become compliant which are detailed in our factsheet.

Our team have worked closely with the professional advisory association STEP in their translation of this act into guidelines and so are experts in ensuring their clients are fully compliant. They can provide advice on What is FATCA and can even help you simplify your trust’s management by using our trust corporation. This is particularly beneficial for family trusts.

Our credentials

“What the team is known for: Bath-based team dealing with complex domestic and international matters. Handles offshore trust work, asset protection and estate administration. Also advises on Court of Protection proceedings and issues concerning vulnerable people. Strengths (Quotes mainly from clients): “Good, clear advice provided without delay.” Notable practitioners: James McNeile (Band 2) leads the group and advises domestic and international clients on estate and tax planning and trust management. Market commentators say he has “a fantastic reputation.”” Chambers 2017 South West

“What the team is known for: Advises clients from its Oxford and Swindon offices on trusts, tax and estate planning matters, wills and estate administration. Adept at handling contentious probate and trusts work. The firm has its own trust company, providing advice to trustees. Strengths (Quotes mainly from clients): “They are strong in estate planning and trusts.” “They’ve been very good and very easy to deal with.” Notable practitioners: Tom Gilman’s (Band 2) practice focuses on inheritance tax issues, wills, trusts and estates planning and administration. He also has capability advising on Court of Protection matters and powers of attorney. A client notes: “He is thoughtful, careful and he has always given me excellent advice.”” Chambers 2017 Thames Valley Oxford, Swindon & Surrounds

“Royds Withy King’s Becky Ricards Small handles personal injury trusts, while department head James McNeile undertakes international work.” Legal 500 2016 South West

“Royds Withy King’s Tom Gilman has ‘a good knowledge of trusts and probate, and is well liked by clients’. Jan Tyley is also recommended.” Legal 500 206 South East

Contact us to find out 'What is FATCA' and how you can comply with the Foreign Account Tax Compliance Act.

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