Jurisdiction(s):
United Kingdom

Key definition

FATCA definition

What does FATCA mean? In legal practice, FATCA refers to the client/account due diligence and tax‑information reporting regime requiring UK and Irish financial institutions to identify and report US taxpayers. It originates in the US Foreign Account Tax compliance Act (2010) but, in the UK and Ireland, operates through Model 1 intergovernmental agreements with the US and domestic regulations. Institutions must detect US indicia, obtain self‑certifications, determine whether accounts are “US reportable”, and report annually to HMRC or the Revenue Commissioners for transmission to the IRS. Non‑compliance risks 30% withholding on certain US‑source payments and counterparty restrictions. Most UK registered pension schemes and many...

FATCA compliance for UK-resident trusts and underlying companies: classification (Investment Entity/NFFE), due diligence, and reporting routes under the UK–US IGA and the International Tax Compliance Regulations 2015

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Practice notes

This Practice Note reviews how the Foreign Account Tax Compliance Act (FATCA) applies to UK trusts, implemented domestically by the International Tax Compliance Regulations 2015, SI 2015/878. For a broader overview of FATCA, see Practice Note: US: Foreign Account Tax Compliance Act (FATCA)—summary, which provides further detailed guidance.

Where the trust is a Pension fund, see Practice Note: Automatic Exchange of Information (AEoI) in the UK—pension schemes.
Where the trust is an employee benefit trust, see Practice Note: Automatic Exchange of Information (AEoI) in the UK—Employee incentive arrangements.

What is FATCA and how does it affect UK Trusts?

FATCA is US legislation intended to curb tax evasion involving US taxpayers’ offshore assets. This Practice Note addresses the impact of FATCA on trusts situated in the UK and highlights the principal issues. It does not extend to offshore trusts.

FATCA obliges non-US Financial Institutions to report Financial Accounts existing on or after 1 July 2014 that are held by “Specified US Persons” (individuals who are US residents, citizens or Green Card holders, and US entities that do not fall within certain excluded categories), as well as “passive” non-US...

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Hatice Ismail

Pinsent Masons

Hatice is a Legal Director in the corporate tax team at Pinsent Masons LLP. Before joining Pinsent Masons, Hatice was a corporate tax partner at Simmons & Simmons LLP for over four years. She has over 16 years’ of broad-based corporate tax experience, both on the advisory and transactional sides. She advises on all aspects of corporate tax, including corporate M&A, restructuring, structured finance and loan transactions, cross-border and real estate transactions, predominantly for clients in the asset management & investment funds and financial institutions sectors. She also advises on stamp taxes, VAT and international exchange of tax information regimes. Hatice is a member of the Tax Committee of the Investment Association....

Web page updated on 21/05/2026

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