1 General news
1.1 Publication of additional draft legislation for Finance Bill 2013
The government has published additional draft legislation for Finance Bill 2013 as follows:
revised draft schedule on vulnerable beneficiary trusts; www.hmrc.gov.uk/budget-updates/march2012/legislation-vuln-bens-trust.pdf
draft clause increasing annual drawdown pension limit. www.hmrc.gov.uk/budget-updates/march2012/legislation-pens-draw.pdf
The legislation is open for consultation until 6 February 2013.
Details of the clauses, Tax Information and Impacts Notes, and Explanatory Notes are available on both the HM Treasury and HM Revenue & Customs website.
1.2 Final FATCA regulations
The draft Finance Bill provisions released on 11 December 2012 included a clause giving HM Treasury a power to make regulations for the purpose of giving effect to the agreement between the Government of the United Kingdom and the Government of the United States of America to improve international tax compliance and to implement FATCA.
The IRS has released a pre-publication version of the final FATCA regulations that will be formally released on 28 January 2013.
A pdf version can be found at:
The notes below have been extracted from the release.
Effect of the final regulations
These final regulations address potential administrative burdens associated with FATCA compliance by adopting a risk-based and targeted approach to implement the statute with respect to scope, diligence, and timing. In particular, with respect to scope, consistent with the objectives of the statute, the regulations limit the institutions, obligations, and accounts subject to FATCA to more specifically target concerns and address practical considerations. For example, the final regulations refine the scope of FATCA in the following ways:
Expansion of Grandfather Rule for Certain Obligations. To promote the orderly implementation of FATCA, the final regulations exempt from chapter 4 withholding all obligations outstanding on January 1, 2014, and any associated collateral. In addition, because evolving areas of the law may create chapter 4 withholding obligations in the future and create uncertainty and risk in the meantime, the final regulations address obligations (and associated collateral) that may give rise to withholdable payments through future regulations under section 871(m) (relating to dividend equivalent payments) or to foreign passthru payments under the chapter 4 foreign passthru payment...