Through the Finance Act 2013, the UK-US agreement to improve international tax compliance and to implement the US Foreign Account Tax Compliance Act (FATCA), is now part of UK law. So with the UK adoption of FATCA and the first reporting period effective, it is imperative that all UK trusts and trustees urgently consider their status, regardless of any known US connections.

FATCA, part of the US Hiring Incentives to Restore Employment Act (2010), aims to combat tax evasion by US tax residents using foreign accounts. The US legislation requires financial institutions outside of the country to provide information about their US customers to the US Internal Revenue Services (IRS).