As we know – e.g. see Regulatory Roundup 63 – those firms that are subject to FATCA must ensure that their first return (in respect of 2014) is submitted to HMRC by 31 May 2015.
The current (August 2014) HMRC Guidance – e.g. see page 72 – advises that Reporting Financial Institutions with no Reportable Accounts are required to submit nil returns to HMRC. However, earlier this month HMRC clarified that those UK financial institutions that do not have any US reportable accounts will not have to submit nil returns. Having said that, where the nil return position is as a result of application of the de minimis $50,000 threshold election (see section 5.1 of the Guidance – the de minimis is $250,00 for Cash Value Insurance Contracts or Annuity Contracts) then a return will still have to be submitted in order to make the election.
Elsewhere we are informed that holding companies and relevant treasury companies are no longer defined as financial institutions.
Revised HMRC Guidance is expected later this year.
