Finance & Accounting

Gibraltar pens UK FATCA agreement

The agreement will take effect once Gibraltar updates its internal systems to process submitted tax reports.

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Gibraltar signed an agreement with the UK that will provide HM Treasury more tax information on overseas accounts owned by UK citizens on Thursday. The bill mirrors the US’ Foreign Accounts Tax Compliance Act (FATCA).

Gibraltar follows in the footsteps of the Cayman Islands and British crown dependencies Guernsey, Jersey and the Isle of Man, which all signed UK FATCA agreements last month.

The signing took place during the Organisation for Economic Co-operation and Development’s (OECD) annual forum on tax transparency in Indonesia.

Gibraltar’s IGA will come into effect when its government notifies HM Treasury that its necessary internal procedures for complying with the law have been completed, according to a government statement.

Fund managers subject to UK FATCA have until May 31 2016 to supply 2014-2015 tax information on their UK investors. Only UK LP tax information recorded on or after 30 June 2014 will be subject to reporting, meaning LPs' 2013 tax information will not need to be submitted, according to HMRC.

Other domiciles that have yet to sign mandatory UK FATCA-style agreements include the Anguilla, Bermuda, the British Virgin Islands, Montserrat and the Turks and Caicos Islands.