AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED 

STATES OF AMERICA AND THE GOVERNMENT OF THE UNITED 

KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND TO 

IMPROVE INTERNATIONAL TAX COMPLIANCE AND TO IMPLEMENT 

FATCA 

Whereas, the Government of the United States of America and the Government of 

the United Kingdom of Great Britain and Northern Ireland (each, a “Party”) have a 

longstanding and close relationship with respect to mutual assistance in tax matters 

and desire to conclude an agreement to improve international tax compliance by 

further building on that relationship, 

Whereas, Article 27 of the Convention between the Government of the United 

States of America and the Government of the United Kingdom of Great Britain and 

Northern Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal 

Evasion with Respect to Taxes on Income and on Capital Gains (“the Convention”)

authorises exchange of information for tax purposes, including on an automatic 

basis, 

Whereas, the United States of America enacted provisions commonly known as the 

Foreign Account Tax Compliance Act (“FATCA”), which introduce a reporting 

regime for financial institutions with respect to certain accounts, 

Whereas, the Government of the United Kingdom of Great Britain and Northern 

Ireland is supportive of the underlying policy goal of FATCA to improve tax 

compliance, 

Whereas, FATCA has raised a number of issues, including that United Kingdom 

financial institutions may not be able to comply with certain aspects of FATCA due 

to domestic legal impediments, 

Whereas, the Government of the United States of America collects information 

regarding certain accounts maintained by U.S. financial institutions held by United 

Kingdom residents and is committed to exchanging such information with the 

Government of the United Kingdom of Great Britain and Northern Ireland and 

pursuing equivalent levels of exchange, 

Whereas, the Parties are committed to working together over the longer term 

towards achieving common reporting and due diligence standards for financial 

institutions, 

Whereas, the Government of the United States of America acknowledges the need 

to coordinate the reporting obligations under FATCA with other U.S. tax reporting 

obligations of United Kingdom financial institutions to avoid duplicative reporting, 

Whereas, an intergovernmental approach to FATCA implementation would address 

legal impediments and reduce burdens for United Kingdom financial institutions, 
 

Whereas, the Parties desire to conclude an agreement to improve international tax 

compliance and provide for the implementation of FATCA based on domestic 

reporting and reciprocal automatic exchange pursuant to the Convention and 

subject to the confidentiality and other protections provided for therein, including 

the provisions limiting the use of the information exchanged under the Convention. 

Now, therefore, the Parties have agreed as follows: 

ARTICLE 1 

Definitions 

1. For purposes of this agreement and any annexes thereto (“Agreement”), the 

following terms shall have the meanings set forth below: 

a) The term “United States” means the United States of America, 

including the States thereof, but do not include the U.S. Territories. 

Any reference to a “State” of the United States includes the District of 

Columbia. 

b) The term “U.S. Territory” means American Samoa, the 

Commonwealth of the Northern Mariana Islands, Guam, the 

Commonwealth of Puerto Rico, or the U.S. Virgin Islands. 

c) The term “IRS” means the U.S. Internal Revenue Service. 

d) The term “United Kingdom” means Great Britain and Northern 

Ireland, including any area outside the territorial sea of the United 

Kingdom which in accordance with international law has been or may 

hereafter be designated, under the laws of the United Kingdom 

concerning the Continental Shelf, as an area within which the rights of 

the United Kingdom with respect to the sea bed and sub-soil and their 

natural resources may be exercised. 

e) The term “Partner Jurisdiction” means a jurisdiction that has in effect 

an agreement with the United States to facilitate the implementation of 

FATCA. The IRS shall publish a list identifying all Partner 

Jurisdictions. 

f) The term “Competent Authority” means: 

(1) in the case of the United States, the Secretary of the Treasury or 

his delegate; and 

(2) in the case of the United Kingdom, the Commissioners for Her 
 

Majesty’s Revenue and Customs (“HMRC”) or their authorised 

representative. 

g) The term “Financial Institution” means a Custodial Institution, a 

Depository Institution, an Investment Entity, or a Specified Insurance 

Company.

h) The term “Custodial Institution” means any entity that holds, as a 

substantial portion of its business, financial assets for the account of 

others. An entity holds financial assets for the account of others as a 

substantial portion of its business if the entity’s gross income 

attributable to the holding of financial assets and related financial 

services equals or exceeds 20 percent of the entity’s gross income 

during the shorter of: (i) the three-year period that ends on December 

31 (or the final day of a non-calendar year accounting period) prior to 

the year in which the determination is being made; or (ii) the period 

during which the entity has been in existence. 

i) The term “Depository Institution” means any entity that accepts 

deposits in the ordinary course of a banking or similar business. 

j) The term “Investment Entity” means any entity that conducts as a 

business (or is managed by an entity that conducts as a business) one or 

more of the following activities or operations for or on behalf of a 

customer: 

(1) trading in money market instruments (cheques, bills, certificates 

of deposit, derivatives, etc.); foreign exchange; exchange, interest 

rate and index instruments; transferable securities; or commodity 

futures trading; 

(2) individual and collective portfolio management; or 

(3) otherwise investing, administering, or managing funds or money 

on behalf of other persons. 

This subparagraph 1(j) shall be interpreted in a manner consistent with 

similar language set forth in the definition of “financial institution” in 

the Financial Action Task Force Recommendations. 

 

k) The term “Specified Insurance Company” means any entity that is an 

insurance company (or the holding company of an insurance company) 

that issues, or is obligated to make payments with respect to, a Cash 

Value Insurance Contract or an Annuity Contract. 

l) The term “United Kingdom Financial Institution” means (i) any 

Financial Institution resident in the United Kingdom, but excluding any 
 

branches of such Financial Institution that are located outside the 

United Kingdom, and (ii) any branch of a Financial Institution not 

resident in the United Kingdom, if such branch is located in the United 

Kingdom. 

m) The term “Partner Jurisdiction Financial Institution” means (i) any 

Financial Institution resident in a Partner Jurisdiction, but excluding 

any branches of such Financial Institution that are located outside the 

Partner Jurisdiction, and (ii) any branch of a Financial Institution not 

resident in the Partner Jurisdiction, if such branch is located in the 

Partner Jurisdiction. 

n) The term “Reporting Financial Institution” means a Reporting 

United Kingdom Financial Institution or a Reporting U.S. Financial 

Institution, as the context requires. 

o) The term “Reporting United Kingdom Financial Institution” means 

any United Kingdom Financial Institution that is not a Non-Reporting 

United Kingdom Financial Institution. 

p) The term “Reporting U.S. Financial Institution” means (i) any 

Financial Institution that is resident in the United States, but excluding 

any branches of such Financial Institution that are located outside the 

United States, and (ii) any branch of a Financial Institution not resident 

in the United States, if such branch is located in the United States, 

provided that the Financial Institution or branch has control, receipt, or 

custody of income with respect to which information is required to be 

exchanged under subparagraph (2)(b) of Article 2 of this Agreement. 

q) The term “Non-Reporting United Kingdom Financial Institution”

means any United Kingdom Financial Institution, or other entity 

resident in the United Kingdom that is identified in Annex II as a NonReporting United Kingdom Financial Institution or that otherwise 

qualifies as a deemed-compliant FFI, an exempt beneficial owner, or an 

excepted FFI under relevant U.S. Treasury Regulations. 

r) The term “Nonparticipating Financial Institution” means a 

nonparticipating FFI, as that term is defined in relevant U.S. Treasury 

Regulations, but does not include a United Kingdom Financial 

Institution or other Partner Jurisdiction Financial Institution other than 

a Financial Institution identified as a Nonparticipating Financial 

Institution pursuant to paragraph 2 of Article 5. 

s) The term “Financial Account” means an account maintained by a 

Financial Institution, and includes: 

(1) in the case of an entity that is a Financial Institution solely 
 

because it is an Investment Entity, any equity or debt interest 

(other than interests that are regularly traded on an established 

securities market) in the Financial Institution; 

(2) in the case of a Financial Institution not described in 

subparagraph 1(s)(1) above, any equity or debt interest in the 

Financial Institution (other than interests that are regularly traded 

on an established securities market), if (i) the value of the debt or 

equity interest is determined, directly or indirectly, primarily by 

reference to assets that give rise to U.S. Source Withholdable 

Payments, and (ii) the class of interests was established with a 

purpose of avoiding reporting in accordance with this Agreement; 

and 

(3) any Cash Value Insurance Contract and any Annuity Contract 

issued or maintained by a Financial Institution, other than a 

noninvestment-linked, nontransferable immediate life annuity 

that is issued to an individual and monetizes a pension or 

disability benefit provided under an account, product, or 

arrangement identified as excluded from the definition of 

Financial Account in Annex II. 

Notwithstanding the foregoing, the term “Financial Account” does not 

include any account, product, or arrangement identified as excluded 

from the definition of Financial Account in Annex II. 

t) The term “Depository Account” includes any commercial, checking, 

savings, time, or thrift account, or an account that is evidenced by a 

certificate of deposit, thrift certificate, investment certificate, certificate 

of indebtedness, or other similar instrument maintained by a Financial 

Institution in the ordinary course of a banking or similar business. A 

Depository Account also generally includes an amount held by an 

insurance company under an agreement to pay or credit interest 

thereon. 

u) The term “Custodial Account” means an account (other than an 

Insurance Contract or Annuity Contract) for the benefit of another 

person that holds any financial instrument or contract held for 

investment (including, but not limited to, a share or stock in a 

corporation, a note, bond, debenture, or other evidence of indebtedness, 

a currency or commodity transaction, a credit default swap, a swap 

based upon a nonfinancial index, a notional principal contract, an 

Insurance Contract or Annuity Contract, and any option or other 

derivative instrument). 

v) The term “Equity Interest” means, in the case of a partnership that is a 

Financial Institution, either a capital or profits interest in the 
 

partnership. In the case of a trust that is a Financial Institution, an 

Equity Interest is considered to be held by any person treated as a 

settlor or beneficiary of all or a portion of the trust, or any other natural 

person exercising ultimate effective control over the trust. A Specified 

U.S. Person shall be treated as being a beneficiary of a foreign trust if 

such Specified U.S. Person has the right to receive directly or indirectly 

(for example, through a nominee) a mandatory distribution or may 

receive, directly or indirectly, a discretionary distribution from the trust. 

w) The term “Insurance Contract” means a contract (other than an 

Annuity Contract) under which the issuer agrees to pay an amount upon 

the occurrence of a specified contingency involving mortality, 

morbidity, accident, liability, or property risk.

x) The term “Annuity Contract” means a contract under which the issuer 

agrees to make payments for a period of time determined in whole or in 

part by reference to the life expectancy of one or more individuals. The 

term also includes a contract that is considered to be an Annuity 

Contract in accordance with the law, regulation, or practice of the 

jurisdiction in which the contract was issued, and under which the 

issuer agrees to make payments for a term of years. 

y) The term “Cash Value Insurance Contract” means an Insurance 

Contract (other than an indemnity reinsurance contract between two 

insurance companies) that has a Cash Value greater than $50,000. 

z) The term “Cash Value” means the greater of (i) the amount that the 

policyholder is entitled to receive upon surrender or termination of the 

contract (determined without reduction for any surrender charge or 

policy loan), and (ii) the amount the policyholder can borrow under or 

with regard to the contract. Notwithstanding the foregoing, the term 

“Cash Value” does not include an amount payable under an Insurance 

Contract as: 

(1) a personal injury or sickness benefit or other benefit providing 

indemnification of an economic loss incurred upon the 

occurrence of the event insured against; 

(2) a refund to the policyholder of a previously paid premium under 

an Insurance Contract (other than under a life insurance contract) 

due to policy cancellation or termination, decrease in risk 

exposure during the effective period of the Insurance Contract, or 

arising from a redetermination of the premium due to correction 

of posting or other similar error; or 

(3) a policyholder dividend based upon the underwriting experience 

of the contract or group involved. 
 

aa) The term “Preexisting Account” means a Financial 

Account maintained by a Reporting Financial Institution as 

of December 31, 2013. 

bb) The term “Reportable Account” means a U.S. Reportable 

Account or a United Kingdom Reportable Account, as the 

context requires. 

cc) The term “United Kingdom Reportable Account” means 

a Financial Account maintained by a Reporting U.S. 

Financial Institution if: (i) in the case of a Depository 

Account, the account is held by an individual resident in the 

United Kingdom and more than $10 of interest is paid to 

such account in any given calendar year; or (ii) in the case 

of a Financial Account other than a Depository Account, the 

Account Holder is a resident of the United Kingdom, 

including entities that certify that they are resident in the 

United Kingdom for tax purposes, with respect to which 

U.S. source income that is subject to reporting under 

chapter 3 or chapter 61 of subtitle A of the U.S. Internal 

Revenue Code is paid or credited. 

dd) The term “U.S. Reportable Account” means a Financial 

Account maintained by a Reporting United Kingdom 

Financial Institution and held by one or more Specified 

U.S. Persons or by a Non-U.S. Entity with one or more 

Controlling Persons that is a Specified U.S. Person. 

Notwithstanding the foregoing, an account shall not be 

treated as a U.S. Reportable Account if such account is not 

identified as a U.S. Reportable Account after application of 

the due diligence procedures in Annex I. 

ee) The term “Account Holder” means the person listed or 

identified as the holder of a Financial Account by the 

Financial Institution that maintains the account. In the case 

of a Cash Value Insurance Contract or an Annuity Contract, 

the Account Holder is any person entitled to access the 

Cash Value or change the beneficiary of the contract. If no 

person can access the Cash Value or change the beneficiary, 

the Account Holders are any person named as the owner in 

the contract and any person with a vested entitlement to 

payment under the terms of the contract. Upon the maturity 

of a Cash Value Insurance Contract or an Annuity Contract, 

each person entitled to receive a payment under the contract 

is treated as an Account Holder. 
 

ff) The term “U.S. Person” means a U.S. citizen or resident 

individual, a partnership or corporation organized in the 

United States or under the laws of the United States or any 

State thereof, a trust if (i) a court within the United States 

would have authority under applicable law to render orders 

or judgments concerning substantially all issues regarding 

administration of the trust, and (ii) one or more U.S. 

persons have the authority to control all substantial 

decisions of the trust, or an estate of a decedent that is a 

citizen or resident of the United States. This subparagraph 

1(ff) shall be interpreted in accordance with the U.S. 

Internal Revenue Code. 

gg) The term “Specified U.S. Person” means a U.S. Person, 

other than: (i) a corporation the stock of which is regularly 

traded on one or more established securities markets; (ii) 

any corporation that is a member of the same expanded 

affiliated group, as defined in section 1471(e)(2) of the U.S. 

Internal Revenue Code, as a corporation described in clause 

(i); (iii) the United States or any wholly owned agency or 

instrumentality thereof; (iv) any State of the United States, 

any U.S. Territory, any political subdivision of any of the 

foregoing, or any wholly owned agency or instrumentality 

of any one or more of the foregoing; (v) any organization 

exempt from taxation under section 501(a) or an individual 

retirement plan as defined in section 7701(a)(37) of the 

U.S. Internal Revenue Code; (vi) any bank as defined in 

section 581 of the U.S. Internal Revenue Code; (vii) any 

real estate investment trust as defined in section 856 of the 

U.S. Internal Revenue Code; (viii) any regulated investment 

company as defined in section 851 of the U.S. Internal 

Revenue Code or any entity registered with the Securities 

Exchange Commission under the Investment Company Act 

of 1940 (15 U.S.C. 80a-64); (ix) any common trust fund as 

defined in section 584(a) of the U.S. Internal Revenue 

Code; (x) any trust that is exempt from tax under section 

664(c) of the U.S. Internal Revenue Code or that is 

described in section 4947(a)(1) of the U.S. Internal 

Revenue Code; (xi) a dealer in securities, commodities, or 

derivative financial instruments (including notional 

principal contracts, futures, forwards, and options) that is 

registered as such under the laws of the United States or 

any State; or (xii) a broker as defined in section 6045(c) of 

the U.S. Internal Revenue Code. 

hh) The term “Entity” means a legal person or a legal 

arrangement such as a trust. 
 

ii) The term “Non-U.S. Entity” means an Entity that is not a 

U.S. Person. 

jj) The term “U.S. Source Withholdable Payment” means any 

payment of interest (including any original issue discount), 

dividends, rents, salaries, wages, premiums, annuities, 

compensations, remunerations, emoluments, and other 

fixed or determinable annual or periodical gains, profits, 

and income, if such payment is from sources within the 

United States. Notwithstanding the foregoing, a U.S. 

Source Withholdable Payment does not include any 

payment that is not treated as a withholdable payment in 

relevant U.S. Treasury Regulations. 

kk) An Entity is a “Related Entity” of another Entity if either 

Entity controls the other Entity, or the two Entities are 

under common control. For this purpose control includes 

direct or indirect ownership of more than 50 percent of the 

vote or value in an Entity. Notwithstanding the foregoing, 

the United Kingdom Competent Authority may treat an 

Entity as not a Related Entity of another Entity if the two 

Entities are not members of the same expanded affiliated 

group as defined in section 1471(e)(2) of the U.S. Internal 

Revenue Code. 

ll) The term “U.S. TIN” means a U.S. federal taxpayer 

identifying number. 

mm) The term “Controlling Persons” means the natural persons 

who exercise control over an entity. In the case of a trust, 

such term means the settlor, the trustees, the protector (if 

any), the beneficiaries or class of beneficiaries, and any 

other natural person exercising ultimate effective control 

over the trust, and in the case of a legal arrangement other 

than a trust, such term means persons in equivalent or 

similar positions. The term “Controlling Persons” shall be 

interpreted in a manner consistent with the 

Recommendations of the Financial Action Task Force. 

2. Any term not otherwise defined in this Agreement shall, unless the context 

otherwise requires or the Competent Authorities agree to a common meaning (as 

permitted by domestic law), have the meaning that it has at that time under the law 

of the Party applying the Agreement, any meaning under the applicable tax laws of 

that Party prevailing over a meaning given to the term under other laws of that 

Party. 
 

ARTICLE 2 

Obligations to Obtain and Exchange Information with Respect to Reportable 

Accounts 

1. Subject to the provisions of Article 3, each Party shall obtain the information 

specified in paragraph 2 of this Article with respect to all Reportable Accounts and 

shall annually exchange this information with the other Party on an automatic basis 

pursuant to the provisions of Article 27 of the Convention. 

2. The information to be obtained and exchanged is: 

a) In the case of the United Kingdom with respect to each U.S. Reportable 

Account of each Reporting United Kingdom Financial Institution: 

(1) the name, address, and U.S. TIN of each Specified U.S. Person 

that is an Account Holder of such account and, in the case of a 

Non-U.S. Entity that, after application of the due diligence 

procedures set forth in Annex I, is identified as having one or 

more Controlling Persons that is a Specified U.S. Person, the 

name, address, and U.S. TIN (if any) of such entity and each such 

Specified U.S. Person; 

(2) the account number (or functional equivalent in the absence of an 

account number); 

(3) the name and identifying number of the Reporting United 

Kingdom Financial Institution; 

(4) the account balance or value (including, in the case of a Cash 

Value Insurance Contract or Annuity Contract, the Cash Value or 

surrender value) as of the end of the relevant calendar year or 

other appropriate reporting period or, if the account was closed 

during such year, immediately before closure; 

(5) in the case of any Custodial Account: 

(A) the total gross amount of interest, the total gross amount of 

dividends, and the total gross amount of other income 

generated with respect to the assets held in the account, in 

each case paid or credited to the account (or with respect to 

the account) during the calendar year or other appropriate 

reporting period; and 

(B) the total gross proceeds from the sale or redemption of 
 

property paid or credited to the account during the calendar 

year or other appropriate reporting period with respect to 

which the Reporting United Kingdom Financial Institution 

acted as a custodian, broker, nominee, or otherwise as an 

agent for the Account Holder; 

(6) in the case of any Depository Account, the total gross amount of 

interest paid or credited to the account during the calendar year or 

other appropriate reporting period; and 

(7) in the case of any account not described in subparagraph (5) or 

(6) of this paragraph, the total gross amount paid or credited to 

the Account Holder with respect to the account during the 

calendar year or other appropriate reporting period with respect to 

which the Reporting United Kingdom Financial Institution is the 

obligor or debtor, including the aggregate amount of any 

redemption payments made to the Account Holder during the 

calendar year or other appropriate reporting period. 

b) In the case of the United States, with respect to each United Kingdom 

Reportable Account of each Reporting U.S. Financial Institution: 

(1) the name, address, and date of birth of any person that is a 

resident of the United Kingdom and is an Account Holder of the 

account; 

(2) the account number (or the functional equivalent in the absence 

of an account number); 

(3) the name and identifying number of the Reporting U.S. Financial 

Institution; 

(4) the gross amount of interest paid on a Depository Account; 

(5) the gross amount of U.S. source dividends paid or credited to the 

account; and 

(6) the gross amount of other U.S. source income paid or credited to 

the account, to the extent subject to reporting under chapter 3 or 

61 of subtitle A of the U.S. Internal Revenue Code. 
 

ARTICLE 3 

Time and Manner of Exchange of Information 

1. For purposes of the exchange obligation in Article 2, the amount and 

characterization of payments made with respect to a U.S. Reportable Account may 

be determined in accordance with the principles of the United Kingdom’s tax laws, 

and the amount and characterization of payments made with respect to a United 

Kingdom Reportable Account may be determined in accordance with principles of 

U.S. federal income tax law. 

2. For purposes of the exchange obligation in Article 2, the information 

exchanged shall identify the currency in which each relevant amount is 

denominated. 

3. With respect to paragraph 2 of Article 2, information is to be obtained and 

exchanged with respect to 2013 and all subsequent years, except that: 

a) In the case of the United Kingdom: 

(1) the information to be obtained and exchanged with respect to 

2013 and 2014 is only the information described in 

subparagraphs (a)(1) to (a)(4); 

(2) the information to be obtained and exchanged with respect to 

2015 is the information described in subparagraphs (a)(1) to 

(a)(7), except for gross proceeds described in subparagraph 

(a)(5)(B); and 

(3) the information to be obtained and exchanged with respect to 

2016 and subsequent years is the information described in 

subparagraph (a)(1) to (a)(7); 

b) In the case of the United States, the information to be obtained and 

exchanged with respect to 2013 and subsequent years is all of the 

information identified in subparagraph (b). 

4. Notwithstanding paragraph 3 of this Article, with respect to each Reportable 

Account that is a Preexisting Account, and subject to paragraph 4 of Article 6: 

a) subject to subparagraph (b) of this paragraph 4, if the U.S TIN is not in 

the records of the Reporting United Kingdom Financial Institution, the 

date of birth of the relevant person shall be provided; and 

b) the Parties are not required to obtain and include in the exchanged 

information the date of birth or the U.S. TIN, as applicable, of any 

relevant person if such date of birth or U.S. TIN is not in the records of 
 

the Reporting Financial Institution. 

5. Subject to paragraphs 3 and 4 of this Article, the information described in 

Article 2 shall be exchanged within nine months after the end of the calendar year 

to which the information relates. Notwithstanding the foregoing, the information 

that relates to calendar year 2013 shall be exchanged no later than September 30, 

2015. 

6. The Competent Authorities of the United Kingdom and the United States 

shall enter into an agreement under the mutual agreement procedure provided for in 

Article 26 of the Convention, which shall: 

a) establish the procedures for the automatic exchange obligations 

described in Article 2; 

b) prescribe rules and procedures as may be necessary to implement 

Article 5; and 

c) establish as necessary procedures for the exchange of the information 

reported under subparagraph 1(b) of Article 4. 

7. All information exchanged shall be subject to the confidentiality and other 

protections provided for in the Convention, including the provisions limiting the 

use of the information exchanged. 

ARTICLE 4 

Application of FATCA to United Kingdom Financial Institutions 

1. Treatment of Reporting United Kingdom Financial Institutions. Each 

Reporting United Kingdom Financial Institution shall be treated as complying with, 

and not subject to withholding under, section 1471 of the U.S. Internal Revenue 

Code if the United Kingdom complies with its obligations under Articles 2 and 3 

with respect to such Reporting United Kingdom Financial Institution; and the 

Reporting United Kingdom Financial Institution: 

a) identifies U.S. Reportable Accounts and reports annually to HMRC the 

information required to be reported in subparagraph 2(a) of Article 2 in 

the time and manner described in Article 3; 

b) for each of 2015 and 2016, reports annually to HMRC the name of, 

each Nonparticipating Financial Institution to which it has made 

payments and the aggregate amount of such payments; 

c) complies with the registration requirements applicable to Financial 

Institutions in Partner Jurisdictions; 
 

d) to the extent that a Reporting United Kingdom Financial Institution is 

(i) acting as a qualified intermediary (for purposes of section 1441 of 

the U.S. Internal Revenue Code) that has elected to assume primary 

withholding responsibility under chapter 3 of subtitle A of the U.S. 

Internal Revenue Code, (ii) a foreign partnership that has elected to act 

as a withholding foreign partnership (for purposes of both sections 

1441 and 1471 of the U.S. Internal Revenue Code), or (iii) a foreign 

trust that has elected to act as a withholding foreign trust (for purposes 

of both sections 1441 and 1471 of the U.S. Internal Revenue Code), 

withholds 30 percent of any U.S. Source Withholdable Payment to any 

Nonparticipating Financial Institution; and 

e) in the case of a Reporting United Kingdom Financial Institution that is 

not described in subparagraph (d) of this paragraph and that makes a 

payment of, or acts as an intermediary with respect to, a U.S. Source 

Withholdable Payment to any Nonparticipating Financial Institution, 

the Reporting United Kingdom Financial Institution provides to any 

immediate payor of such U.S. Source Withholdable Payment the 

information required for withholding and reporting to occur with 

respect to such payment. 

Notwithstanding the foregoing, a Reporting United Kingdom Financial Institution 

with respect to which the conditions of this paragraph are not satisfied shall not be 

subject to withholding under section 1471 of the U.S. Internal Revenue Code 

unless such Reporting United Kingdom Financial Institution is identified by the 

IRS as a Nonparticipating Financial Institution pursuant to subparagraph 2(b) of 

Article 5. 

2. Suspension of Rules Relating to Recalcitrant Accounts. The United States 

shall not require a Reporting United Kingdom Financial Institution to withhold tax 

under section 1471 or 1472 of the U.S. Internal Revenue Code with respect to an 

account held by a recalcitrant account holder (as defined in section 1471(d)(6) of 

the U.S. Internal Revenue Code), or to close such account, if the U.S. Competent 

Authority receives the information set forth in subparagraph 2(a) of Article 2, 

subject to the provisions of Article 3, with respect to such account. 

3. Specific Treatment of Retirement Plans. The United States shall treat as a 

deemed-compliant FFI or exempt beneficial owner, as appropriate, for purposes of 

section 1471 of the U.S. Internal Revenue Code United Kingdom retirement plans 

described and identified in Annex II. For this purpose, a United Kingdom 

retirement plan includes an entity established or located in and regulated in the 

United Kingdom, or a predetermined contractual or legal arrangement, operated to 

provide pension or retirement benefits or earn income for providing such benefits 

under the laws of the United Kingdom and regulated with respect to contributions, 

distributions, reporting, sponsorship, and taxation. 
 

4. Identification and Treatment of Other Deemed-Compliant FFIs and 

Exempt Beneficial Owners. The United States shall treat each Non-Reporting 

United Kingdom Financial Institution as a deemed-compliant FFI or as an exempt 

beneficial owner, as appropriate, for purposes of section 1471 of the U.S. Internal 

Revenue Code. 

5. Special Rules Regarding Related Entities That Are Nonparticipating 

Financial Institutions. If a United Kingdom Financial Institution, that otherwise 

meets the requirements of paragraph 1 of this Article or is described in paragraph 3 

or 4 of this Article, has a Related Entity or branch that operates in a jurisdiction that 

prevents such Related Entity or branch from fulfilling the requirements of a 

participating FFI or deemed-compliant FFI for purposes of section 1471 of the U.S. 

Internal Revenue Code, such United Kingdom Financial Institution shall continue 

to be in compliance with the terms of this Agreement and shall continue to be 

treated as a deemed-compliant FFI or exempt beneficial owner for purposes of 

section 1471 of the U.S. Internal Revenue Code, provided that: 

a) the United Kingdom Financial Institution treats each such Related 

Entity or branch as a separate Nonparticipating Financial Institution for 

purposes of all the reporting and withholding requirements of this 

Agreement and each such Related Entity or branch identifies itself to 

withholding agents as a Nonparticipating Financial Institution; 

b) each such Related Entity or branch identifies its U.S. accounts and 

reports the information with respect to those accounts as required under 

section 1471 of the U.S. Internal Revenue Code to the extent permitted 

under the relevant laws pertaining to the Related Entity or branch; and 

c) such Related Entity or branch does not specifically solicit U.S. 

accounts held by persons that are not resident in the jurisdiction where 

such Related Entity or branch is located or accounts held by 

Nonparticipating Financial Institutions that are not established in the 

jurisdiction where such branch or Related Entity is located, and such 

branch or Related Entity is not used by the United Kingdom Financial 

Institution or any other Related Entity to circumvent the obligations 

under this Agreement or under section 1471 of the U.S. Internal 

Revenue Code, as appropriate. 

ARTICLE 5 

Collaboration on Compliance and Enforcement 

1. Minor and Administrative Errors. Subject to any further terms set forth 

in a competent authority agreement executed pursuant to paragraph 6 of Article 3, a 

Competent Authority can make an inquiry directly to a Reporting Financial 

Institution in the other jurisdiction where it has reason to believe that 
 

administrative errors or other minor errors may have led to incorrect or incomplete 

information reporting or resulted in other infringements of this Agreement. The 

competent authority agreement may provide that a Competent Authority shall 

notify the Competent Authority of the other Party when the first-mentioned 

Competent Authority makes such an inquiry of a Reporting Financial Institution in 

the other jurisdiction regarding the Reporting Financial Institution’s compliance 

with the conditions set forth in this Agreement. 

2. Significant Non-compliance. 

a) A Competent Authority shall notify the Competent Authority of the 

other Party when the first-mentioned Competent Authority has 

determined that there is significant non-compliance with the obligations 

under this Agreement with respect to a Reporting Financial Institution 

in the other jurisdiction. The Competent Authority of such other Party 

shall apply its domestic law (including applicable penalties) to address 

the significant non-compliance described in the notice. 

b) If, in the case of a Reporting United Kingdom Financial Institution, 

such enforcement actions do not resolve the non-compliance within a 

period of 18 months after notification of significant non-compliance is 

first provided, the United States shall treat the Reporting United 

Kingdom Financial Institution as a Nonparticipating Financial 

Institution. The IRS shall make available a list of all Reporting United 

Kingdom Financial Institutions and other Partner Jurisdiction Financial 

Institutions that are treated as Nonparticipating Financial Institutions 

pursuant to this paragraph. 

3. Reliance on Third Party Service Providers. Each Party may allow 

Reporting Financial Institutions to use third party service providers to fulfill the 

obligations imposed on them by a Party, as contemplated in this Agreement, but 

these obligations shall remain the responsibility of the Reporting Financial 

Institutions. 

4. Prevention of Avoidance. The Parties shall implement as necessary 

requirements to prevent Financial Institutions from adopting practices intended to 

circumvent the reporting required under this Agreement. 

ARTICLE 6 

Mutual Commitment to Continue to Enhance the Effectiveness of Information 

Exchange and Transparency 

1. Reciprocity. The Government of the United States acknowledges the need to 

achieve equivalent levels of reciprocal automatic information exchange with the 

United Kingdom. The Government of the United States is committed to further 
 

improve transparency and enhance the exchange relationship with the United 

Kingdom by pursuing the adoption of regulations and advocating and supporting 

relevant legislation to achieve such equivalent levels of reciprocal automatic 

exchange. 

2. Treatment of Passthru Payments and Gross Proceeds. The Parties are 

committed to work together, along with other partners, to develop a practical and 

effective alternative approach to achieve the policy objectives of foreign passthru 

payment and gross proceeds withholding that minimizes burden. 

3. Development of Common Reporting and Exchange Model. The Parties 

are committed to working with other partners, the Organisation for Economic Cooperation and Development, and the European Union, on adapting the terms of this 

Agreement to a common model for automatic exchange of information, including 

the development of reporting and due diligence standards for financial institutions. 

4. Documentation of Accounts Maintained as of January 1, 2014. With 

respect to Reportable Accounts that are Preexisting Accounts maintained by a 

Reporting Financial Institution: 

a) The United States commits to establish, by January 1, 2017, for 

reporting with respect to 2017 and subsequent years, rules requiring 

Reporting U.S. Financial Institutions to obtain and report the date of 

birth of each Account Holder of a United Kingdom Reportable Account 

as required pursuant to subparagraph 2(b)(1) of Article 2; and 

b) The United Kingdom commits to establish, by January 1, 2017, for 

reporting with respect to 2017 and subsequent years, rules requiring 

Reporting United Kingdom Financial Institutions to obtain the U.S. 

TIN of each Specified U.S. Person as required pursuant to 

subparagraph 2(a)(1) of Article 2. 

ARTICLE 7 

 Consistency in the Application of FATCA to Partner Jurisdictions 

1. The United Kingdom shall be granted the benefit of any more favorable 

terms under Article 4 or Annex 1 of this Agreement relating to the application of 

FATCA to United Kingdom Financial Institutions afforded to another Partner 

Jurisdiction under a signed bilateral agreement pursuant to which the other Partner 

Jurisdiction commits to undertake the same obligations as the United Kingdom 

described in Articles 2 and 3 of this Agreement, and subject to the same terms and 

conditions as described therein and in Articles 5 through 9 of the Agreement. 

2. The United States shall notify the United Kingdom of any such more 

favorable terms and shall apply such more favorable terms automatically under this 
 

Agreement as if they were specified in this Agreement and effective as of the date 

of the entry into force of the agreement incorporating the more favorable terms. 

 

ARTICLE 8 

Consultations and Amendments 

1. In case any difficulties in the implementation of this Agreement arise, either 

Party may request consultations to develop appropriate measures to ensure the 

fulfillment of this Agreement. 

2. This Agreement may be amended by written mutual consent of the Parties. 

Unless otherwise agreed upon, such an amendment shall enter into force through 

the same procedures as set forth in paragraph 1 of Article 10. 

ARTICLE 9 

Annexes 

The annexes form an integral part of this Agreement. 

ARTICLE 10 

Term of Agreement 

1. The Parties shall notify each other in writing when their necessary internal 

procedures for entry into force have been completed. The Agreement shall enter 

into force on the date of the later of such notifications, and shall continue in force 

until terminated. 

 

2. Either Party may terminate the Agreement by giving notice of termination in 

writing to the other Party. Such termination shall become effective on the first day 

of the month following the expiration of a period of 12 months after the date of the 

notice of termination. 

3. The Parties shall, prior to December 31, 2016, consult in good faith to amend 

this Agreement as necessary to reflect progress on the commitments set forth in 

Article 6. 
 

In witness whereof, the undersigned, being duly authorized thereto by their 

respective Governments, have signed this Agreement. 

Done at ......................................... , in duplicate, in English, 

this............................ day of ........................... , 2012. 

FOR THE GOVERNMENT OF 

THE UNITED STATES OF 

AMERICA:

FOR THE GOVERNMENT OF THE 

UNITED KINGDOM OF GREAT 

BRITAIN AND NORTHERN 

IRELAND: 
 

ANNEX I 

DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON U.S. 

REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN 

NONPARTICIPATING FINANCIAL INSTITUTIONS 

I. General

 

A. The United Kingdom shall require that Reporting United Kingdom Financial 

Institutions apply the due diligence procedures contained in this Annex I to 

identify U.S. Reportable Accounts and accounts held by Nonparticipating 

Financial Institutions. 

B. For purposes of the Agreement, 

1. All dollar amounts shall be read to include the equivalent in other 

currencies. 

2. The balance or value of an account shall be determined as of the last day of 

the calendar year or other appropriate reporting period. 

3. Where a balance or value threshold is to be determined as of the last day of 

a calendar year under this Annex I, the relevant balance or value shall be 

determined as of the last day of the reporting period that ends with or within 

that calendar year. 

4. Subject to paragraph II.E (1), an account shall be treated as a U.S. 

Reportable Account beginning as of the date it is identified as such pursuant 

to the due diligence procedures in this Annex I. 

5. Unless otherwise provided, information with respect to a U.S. Reportable 

Account shall be reported annually in the calendar year following the year 

to which the information relates. 

 

C. As an alternative to the procedures described in each section of this Annex I, the 

United Kingdom may allow its Reporting United Kingdom Financial Institutions 

to rely on the procedures described in relevant U.S. Treasury Regulations to 

establish whether an account is a U.S. Reportable Account or an account held by 

a Nonparticipating Financial Institution. 

II. Preexisting Individual Accounts. The following rules and procedures apply for 

identifying U.S. Reportable Accounts among Preexisting Accounts held by individuals 

(“Preexisting Individual Accounts”). 

A. Accounts Not Required to Be Reviewed, Identified or Reported. Unless the 

Reporting United Kingdom Financial Institution elects otherwise, where the 

implementing rules in the United Kingdom provide for such an election, the 

following accounts are not required to be reviewed, identified, or reported as U.S. 

Reportable Accounts: 
 

1. Subject to subparagraph E (2) of this section, Preexisting Individual 

Accounts with a balance or value that does not exceed $50,000 as of 

December 31, 2013. 

2. Subject to subparagraph E (2) of this section, Preexisting Individual 

Accounts that are Cash Value Insurance Contracts and Annuity Contracts 

with a balance or value of $250,000 or less as of December 31, 2013. 

3. Preexisting Individual Accounts that are Cash Value Insurance Contracts or 

Annuity Contracts, provided the law or regulations of the United Kingdom 

or the United States effectively prevents the sale of Cash Value Insurance 

Contracts or Annuity Contracts to U.S. residents, such as if the relevant 

Financial Institution does not have the required registration under U.S. law, 

and the law of the United Kingdom requires reporting or withholding with 

respect to insurance products held by residents of the United Kingdom. 

4. Any Depository Account with a balance or value of $50,000 or less. 

 

B. Review Procedures for Preexisting Individual Accounts With a Balance or 

Value as of December 31, 2013, that Exceeds $50,000 ($250,000 for a Cash 

Value Insurance Contract or Annuity Contract), But Does Not Exceed 

$1,000,000 (“Lower Value Accounts”)

1. Electronic Record Search. The Reporting United Kingdom Financial 

Institution must review electronically searchable data maintained by the 

Reporting United Kingdom Financial Institution for any of the following 

U.S. indicia: 

a) Identification of the account holder as a U.S. citizen or resident; 

b) Unambiguous indication of a U.S. place of birth; 

c) Current U.S. mailing or residence address (including a U.S. post 

office box or U.S. “in-care-of” address); 

d) Current U.S. telephone number; 

e) Standing instructions to transfer funds to an account maintained in the 

United States; 

f) Currently effective power of attorney or signatory authority granted to 

a person with a U.S. address; or 

g) An “in-care-of” or “hold mail” address that is the sole address the 

Reporting United Kingdom Financial Institution has on file for the 

account holder. In the case of a Preexisting Individual Account that is 

a Lower Value Account, an “in-care-of” address outside the United 

States shall not be treated as U.S. indicia. 
 

2. If none of the U.S. indicia listed in subparagraph B (1) of this section are 

discovered in the electronic search, then no further action is required until 

there is a change in circumstances described in subparagraph C (2) of this 

section with respect to the account that results in one or more U.S. indicia 

being associated with the account. 

3. If any of the U.S. indicia in subparagraph B (1) of this section are 

discovered in the electronic search, then the Reporting United Kingdom 

Financial Institution must treat the account as a U.S. Reportable Account 

unless it elects to apply subparagraph B (4) of this section and one of the 

exceptions in such subparagraph applies with respect to that account. 

4. Notwithstanding a finding of U.S. indicia under subparagraph B (1) of this 

section, a Reporting United Kingdom Financial Institution is not required to 

treat an account as a U.S. Reportable Account if: 

a) Where account holder information unambiguously indicates a U.S. 

place of birth, the Reporting United Kingdom Financial Institution 

obtains or has previously reviewed and maintains a record of: 

(1) a self-certification that the account holder is neither a U.S. 

citizen nor a U.S. resident for tax purposes (which may be on an 

IRS Form W-8 or other similar agreed form); 

 

(2) a non-U.S. passport or other government-issued identification 

evidencing the account holder’s citizenship or nationality in a 

country other than the United States; and

(3) a copy of the account holder’s Certificate of Loss of Nationality 

of the United States or a reasonable explanation of: 

(a) the reason the account holder does not have such a 

certificate despite renouncing U.S. citizenship; or

(b) the reason the account holder did not obtain U.S. 

citizenship at birth. 

b) Where account holder information contains a current U.S. mailing or 

residence address, or one or more U.S. telephone numbers that are 

the only telephone numbers associated with the account, the 

Reporting United Kingdom Financial Institution obtains or has 

previously reviewed and maintains a record of: 

(1) a self-certification that the account holder is not a U.S. citizen 

or resident for tax purposes (which may be on an IRS Form W-8 

or other similar agreed form); and

(2) a non-U.S. passport or other government-issued identification 
 

evidencing the account holder’s citizenship or nationality in a 

country other than the United States. 

c) Where account holder information contains standing instructions to 

transfer funds to an account maintained in the United States, the 

Reporting United Kingdom Financial Institution obtains or has 

previously reviewed and maintains a record of: 

(1) a self-certification that the account holder is not a U.S. citizen 

or resident for tax purposes (which may be on an IRS Form W-8 

or other similar agreed form); and

(2) documentary evidence, as defined in paragraph VI.D of this 

Annex I, establishing the account holder’s non-U.S. status. 

d) Where account holder information contains a currently effective 

power of attorney or signatory authority granted to a person with a 

U.S. address, has an “in-care-of” address or “hold mail” address 

that is the sole address identified for the account holder, or has one 

or more U.S. telephone numbers (if a non-U.S. telephone number is 

also associated with the account), the Reporting United Kingdom 

Financial Institution obtains or has previously reviewed and maintains 

a record of: 

(1) a self-certification that the account holder is not a U.S. citizen 

or resident for tax purposes (which may be on an IRS Form W-8 

or other similar agreed form); or

(2) documentary evidence as defined in paragraph VI.D of this 

Annex I, establishing the account holder’s non-U.S. status. 

C. Additional Procedures Applicable to Preexisting Individual Accounts That 

Are Lower Value Accounts

1. Review of Preexisting Individual Accounts that are Lower Value Accounts 

for U.S. indicia must be completed by December 31, 2015. 

2. If there is a change of circumstances with respect to a Preexisting 

Individual Account that is a Lower Value Account that results in one or 

more U.S. indicia described in subparagraph B (1) of this section being 

associated with the account, then Reporting United Kingdom Financial 

Institution must treat the account as a U.S. Reportable Account unless 

subparagraph B (4) of this section applies. 

3. Except for Depository Accounts described in subparagraph A (4) of this 

section, any Preexisting Individual Account that has been identified as a 

U.S. Reportable Account under this section shall be treated as a U.S. 

Reportable Account in all subsequent years, unless the account holder 

ceases to be a Specified U.S. Person. 
 

D. Enhanced Review Procedures for Preexisting Individual Accounts With a 

Balance or Value That Exceeds $1,000,000 as of December 31, 2013, or 

December 31 of Any Subsequent Year (“High Value Accounts”) 

1. Electronic Record Search. The Reporting United Kingdom Financial 

Institution must review electronically searchable data maintained by the 

Reporting United Kingdom Financial Institution for any of the U.S. indicia 

identified in subparagraph B (1) of this section. 

2. Paper Record Search. If the Reporting United Kingdom Financial 

Institution’s electronically searchable databases include fields for and 

capture all of the information identified in subparagraph D (3) of this 

section, then no further paper record search is required. If the electronic 

databases do not capture all of this information, then with respect to High 

Value Accounts, the Reporting United Kingdom Financial Institution must 

also review the current customer master file and, to the extent not contained 

in the current customer master file, the following documents associated 

with the account and obtained by the Reporting United Kingdom Financial 

Institution within the last five years for any of the U.S. indicia identified in 

subparagraph B (1) of this section: 

a) the most recent documentary evidence collected with respect to the 

account; 

b) the most recent account opening contract or documentation; 

c) the most recent documentation obtained by the Reporting United 

Kingdom Financial Institution pursuant to AML/KYC Procedures or 

for other regulatory purposes; 

d) any power of attorney or signature authority forms currently in effect; 

and

e) any standing instructions to transfer funds currently in effect. 

3. Exception Where Databases Contain Sufficient Information. A 

Reporting United Kingdom Financial Institution is not required to perform 

the paper record search described in subparagraph D (2) of this section if 

the Reporting United Kingdom Financial Institution’s electronically 

searchable information includes the following: 

a) the account holder’s nationality or residence status; 

b) the account holder’s residence address and mailing address currently 

on file with the Reporting United Kingdom Financial Institution; 

c) the account holder’s telephone number(s) currently on file, if any, 

with the Reporting United Kingdom Financial Institution; 
 

d) whether there are standing instructions to transfer funds in the account 

to another account (including an account at another branch of the 

Reporting United Kingdom Financial Institution or another Financial 

Institution); 

e) whether there is a current “in-care-of” address or “hold mail” address 

for the account holder; and

f) whether there is any power of attorney or signatory authority for the 

account. 

4. Relationship Manager Inquiry for Actual Knowledge. In addition to the 

electronic and paper record searches described above, the Reporting United 

Kingdom Financial Institution must treat as U.S. Reportable Accounts any 

High Value Accounts assigned to a relationship manager (including any 

accounts aggregated with such account) if the relationship manager has 

actual knowledge that the account holder is a Specified U.S. Person. 

5. Effect of Finding U.S. Indicia. 

a) If none of the U.S. indicia listed in subparagraph B (1) of this section 

are discovered in the enhanced review of High Value Accounts 

described above, and the account is not identified as held by a 

Specified U.S. Person in subparagraph D (4) of this section, then no 

further action is required until there is a change in circumstances 

described in subparagraph E (4) of this section. 

b) If any of the U.S. indicia listed in subparagraph B (1) of this section 

are discovered in the enhanced review of High Value Accounts 

described above, or if there is a subsequent change in circumstances 

that results in one or more U.S. indicia being associated with the 

account, then the Reporting United Kingdom Financial Institution 

must treat the account as a U.S. Reportable Account unless 

subparagraph B (4) of this section applies. 

c) Except for Depository Accounts described in paragraph A (4) of this 

section, any Preexisting Individual Account that has been identified as 

a U.S. Reportable Account under this section shall be treated as a U.S. 

Reportable Account in all subsequent years, unless the account holder 

ceases to be a Specified U.S. Person. 

E. Additional Procedures Applicable to High Value Accounts

1. If a Preexisting Individual Account is a High Value Account as of 

December 31, 2013, the Reporting United Kingdom Financial Institution 

must complete the enhanced review procedures described in paragraph D of 

this section with respect to such account by December 31, 2014. If based 

on this review such account is identified as a U.S. Reportable Account, the 
 

Reporting United Kingdom Financial Institution must report the required 

information about such account with respect to 2013 and 2014 in the first 

report on the Account. For all subsequent years, information about the 

account should be reported on an annual basis. 

2. If a Preexisting Individual Account is not a High Value Account as of 

December 31, 2013, but becomes a High Value Account as of the last day of 

a subsequent calendar year, the Reporting United Kingdom Financial 

Institution must complete the enhanced review procedures described in 

paragraph D of this section with respect to such account within six months 

after the last day of the calendar year in which the account becomes a High 

Value Account. If based on this review such account is identified as a U.S. 

Reportable Account, the Reporting United Kingdom Financial Institution 

must report the required information about such account with respect to the 

year in which it is identified as a U.S. Reportable Account and subsequent 

years on an annual basis. 

3. Once a Reporting United Kingdom Financial Institution applies the 

enhanced review procedures set forth above to a High Value Account, the 

Reporting United Kingdom Financial Institution shall not be required to reapply such procedures, other than the relationship manager inquiry in 

subparagraph D (4) of this section, to the same High Value Account in any 

subsequent year. 

4. If there is a change of circumstances with respect to a High Value Account 

that results in one or more U.S. indicia described in subparagraph B (1) of 

this section being associated with the account, then the Reporting United 

Kingdom Financial Institution must treat the account as a U.S. Reportable 

Account unless subparagraph B (4) of this section applies. 

5. A Reporting United Kingdom Financial Institution must implement 

procedures to ensure that a relationship manager identifies any change in 

circumstances of an account. For example, if a relationship manager is 

notified that the account holder has a new mailing address in the United 

States, the Reporting United Kingdom Financial Institution shall be 

required to treat the new address as a change in circumstances and shall be 

required to obtain the appropriate documentation from the account holder. 

III. New Individual Accounts. The following rules and procedures apply for identifying 

U.S. Reportable Accounts among accounts held by individuals and opened on or after 

January 1, 2014 (“New Individual Accounts”). 

A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless the 

Reporting United Kingdom Financial Institution elects otherwise where the 

implementing rules in the United Kingdom provide for such an election: 

1. A New Individual Account that is a Depository Account is not required to 

be reviewed, identified, or reported as a U.S. Reportable Account unless the 

account balance exceeds $50,000 at the end of any calendar year or other 
 

appropriate reporting period. 

2. A New Individual Account that is a Cash Value Insurance Contract is not 

required to be reviewed, identified, or reported as a U.S. Reportable 

Account unless the Cash Value exceeds $50,000 at the end of any calendar 

year or other appropriate reporting period. 

 

B. Other New Individual Accounts. With respect to New Individual Accounts not 

described in paragraph A of this section, upon account opening, the Reporting 

United Kingdom Financial Institution must obtain a self-certification which may 

be part of the account opening documentation, that allows the Reporting United 

Kingdom Financial Institution to determine whether the account holder is resident 

in the United States for tax purposes (for this purpose, a U.S. citizen is considered 

to be resident in the United States for tax purposes, even if the account holder is 

also a tax resident of another country) and confirm the reasonableness of such 

self-certification based on the information obtained by the Reporting United 

Kingdom Financial Institution in connection with the opening of the account, 

including any documentation collected pursuant to AML/KYC Procedures. 

C. If the self-certification establishes that the account holder is resident in the United 

States for tax purposes, the Reporting United Kingdom Financial Institution must 

treat the account as a U.S. Reportable Account and obtain a self-certification that 

includes the account holder’s U.S. TIN (which may be an IRS Form W-9 or other 

similar agreed form). 

D. If there is a change of circumstances with respect to a New Individual Account 

that causes the Reporting United Kingdom Financial Institution to know or have 

reason to know that the original self-certification is incorrect or unreliable, the 

Reporting United Kingdom Financial Institution cannot rely on the original selfcertification and must obtain a valid self-certification that establishes whether the 

account holder is a U.S. citizen or resident for U.S. tax purposes. If the Reporting 

United Kingdom Financial Institution is unable to obtain a valid self-certification, 

the Reporting United Kingdom Financial Institution must treat the account as a 

U.S. Reportable Account. 

IV. Preexisting Entity Accounts. The following rules and procedures apply for purposes 

of identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial 

Institutions among Preexisting Accounts held by entities (“Preexisting Entity Accounts”). 

A. Entity Accounts Not Required to Be Reviewed, Identified, or Reported. 

Unless the Reporting United Kingdom Financial Institution elects otherwise, 

where the implementing rules in the United Kingdom provide for such an 

election, Preexisting Entity Accounts with account balances that do not exceed 

$250,000 as of December 31, 2013, are not required to be reviewed, identified, or 

reported as U.S. Reportable Accounts until the account balance exceeds 

$1,000,000. 

 

B. Entity Accounts Subject to Review. Preexisting Entity Accounts that have an 

account balance or value that exceeds $250,000 as of December 31, 2013, and 
 

Preexisting Entity Accounts that initially do not exceed $250,000 but the account 

balance of which later exceeds $1,000,000 must be reviewed in accordance with 

the procedures set forth in paragraph C of this section. 

C. Entity Accounts With Respect to Which Reporting is Required. With respect 

to Preexisting Entity Accounts described in paragraph B of this section, only 

accounts that are held by one or more entities that are Specified U.S. Persons, or 

by Passive NFFEs with one or more Controlling Persons who are U.S. citizens or 

residents shall be treated as U.S. Reportable Accounts. In addition, accounts held 

by Nonparticipating Financial Institutions shall be treated as accounts for which 

aggregate payments as described in paragraph 1(b) of Article 4 of the Agreement 

are reported to HMRC. 

D. Review Procedures for Identifying Entity Accounts With Respect to Which 

Reporting is Required. For Preexisting Entity Accounts described in paragraph 

B of this section, the Reporting United Kingdom Financial Institution must apply 

the following review procedures to determine whether the account is held by one 

or more Specified U.S. Persons, by Passive NFFEs with one or more Controlling 

Persons who are U.S. citizens or residents, or by a Nonparticipating Financial 

Institution: 

1. Determine Whether the Entity is a Specified U.S. Person.

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AML/KYC Procedures) to determine whether the information 

indicates that the entity account holder is a U.S. Person. For this 

purpose, information indicating that the entity is a U.S. Person 

includes a U.S. place of incorporation or organization, or a U.S. 

address. 

b) If the information indicates that the entity account holder is a U.S. 

Person, the Reporting United Kingdom Financial Institution must 

treat the account as a U.S. Reportable Account unless it obtains a selfcertification from the account holder (which may be on an IRS Form 

W-8 or W-9, or a similar agreed form), or reasonably determines 

based on information in its possession or that is publicly available, 

that the account holder is not a Specified U.S. Person. 

2. Determine Whether a Non-U.S. Entity is a Financial Institution.

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AML/KYC Procedures) to determine whether the information 

indicates that the entity account holder is a Financial Institution. 

b) If the information indicates that the entity account holder is a 

Financial Institution, then the account is not a U.S. Reportable 

Account. 
 

3. Determine Whether a Financial Institution is a Nonparticipating 

Financial Institution Payments to Which Are Subject to Aggregate 

Reporting Under Paragraph 1(b) of Article 4 of the Agreement. 

a) Subject to subparagraph (b) of this paragraph, if the account holder is 

a United Kingdom Financial Institution or other Partner Jurisdiction 

Financial Institution, then no further review, identification, or 

reporting is required with respect to the account. 

b) A United Kingdom Financial Institution or other Partner Jurisdiction 

Financial Institution shall be treated as a Nonparticipating Financial 

Institution if it is identified as such by the IRS pursuant to paragraph 

2 of Article 5 of the Agreement. 

c) If the account holder is not a United Kingdom Financial Institution or 

other Partner Jurisdiction Financial Institution, then the Reporting 

United Kingdom Financial Institution must treat the entity as a 

Nonparticipating Financial Institution payments to which are 

reportable under paragraph 1(b) of Article 4 of the Agreement, unless 

the Reporting United Kingdom Financial Institution: 

(1) Obtains a self-certification (which may be on an IRS Form W-8 

or similar agreed form) from the entity that it is a certified 

deemed-compliant FFI, an exempt beneficial owner, or an 

excepted FFI, as those terms are defined in relevant U.S. 

Treasury Regulations; or

(2) In the case of a participating FFI or registered deemedcompliant FFI, verifies the entity’s FATCA identifying number 

on a published IRS FFI list. 

4. Determine Whether an Account Held by an NFFE is a U.S. Reportable 

Account. With respect to an account holder of a Preexisting Entity Account 

that is not identified as either a U.S. Person or a Financial Institution, the 

Reporting United Kingdom Financial Institution must identify (i) whether 

the entity has Controlling Persons, (ii) whether the entity is a Passive 

NFFE, and (iii) whether any of the Controlling Persons of the entity is a 

citizen or resident of the United States. In making these determinations the 

Reporting United Kingdom Financial Institution should follow the guidance 

in sub-paragraphs (a) through (d) of this paragraph in the order most 

appropriate under the circumstances. 

a) For purposes of determining the Controlling Persons of an entity, a 

Reporting United Kingdom Financial Institution may rely on 

information collected and maintained pursuant to AML/KYC 

Procedures. 

b) For purposes of determining whether the entity is a Passive NFFE, the 
 

Reporting United Kingdom Financial Institution must obtain a selfcertification (which may be on an IRS Form W-8 or W-9, or on a 

similar agreed form) from the account holder to establish its status, 

unless it has information in its possession or that is publicly available, 

based on which it can reasonably determine that the entity is an 

Active NFFE. 

c) For purposes of determining whether a Controlling Person of a 

Passive NFFE is a citizen or resident of the United States for tax 

purposes, a Reporting United Kingdom Financial Institution may rely 

on: 

(1) Information collected and maintained pursuant to AML/KYC 

Procedures in the case of a Preexisting Entity Account held by 

one or more NFFEs with an account balance that does not 

exceed $1,000,000; or 

(2) A self-certification (which may be on an IRS Form W-8 or W-9, 

or on a similar agreed form) from the account holder or such 

Controlling Person in the case of a Preexisting Entity Account 

held by one or more NFFEs with an account balance that 

exceeds $1,000,000. 

d) If any Controlling Person of a Passive NFFE is a citizen or resident of 

the United States, the account shall be treated as a U.S. Reportable 

Account. 

E. Timing of Review and Additional Procedures Applicable to Preexisting 

Entity Accounts

1. Review of Preexisting Entity Accounts with an account balance or value 

that exceeds $250,000 as of December 31, 2013, must be completed by 

December 31, 2015. 

2. Review of Preexisting Entity Accounts with a balance or value that does not 

exceed $250,000 as of December 31, 2013, but exceeds $1,000,000 as of 

December 31 of a subsequent year, must be completed within six months 

after the end of the calendar year in which the account balance exceeds 

$1,000,000. 

3. If there is a change of circumstances with respect to a Preexisting Entity 

Account that causes the Reporting United Kingdom Financial Institution to 

know or have reason to know that the self-certification or other 

documentation associated with an account is incorrect or unreliable, the 

Reporting United Kingdom Financial Institution must re-determine the 

status of the account in accordance with the procedures set forth in 

paragraph D of this section. 

V. New Entity Accounts. The following rules and procedures apply to accounts held by 
 

entities and opened on or after January 1, 2014 (“New Entity Accounts”). 

A. The Reporting United Kingdom Financial Institution must determine whether the 

account holder is: (i) a Specified U.S. Person; (ii) a United Kingdom Financial 

Institution or other Partner Jurisdiction Financial Institution; (iii) a participating 

FFI, a deemed-compliant FFI, an exempt beneficial owner, or an excepted FFI, as 

those terms are defined in relevant U.S. Treasury Regulations; or (iv) an Active 

NFFE or Passive NFFE. 

B. A Reporting United Kingdom Financial Institution may determine that an account 

holder is an Active NFFE, a United Kingdom Financial Institution, or other 

Partner Jurisdiction Financial Institution if the Reporting United Kingdom 

Financial Institution reasonably determines that the entity has such status on the 

basis of information that is publicly available or in the possession of the 

Reporting United Kingdom Financial Institution. 

C. In all other cases, a Reporting United Kingdom Financial Institution must obtain 

a self-certification from the account holder to establish the account holder’s 

status. 

 

1. If the entity account holder is a Specified U.S. Person, the Reporting 

United Kingdom Financial Institution must treat the account as a U.S. 

Reportable Account. 

2. If the entity account holder is a Passive NFFE, the Reporting United 

Kingdom Financial Institution must identify the Controlling Persons as 

determined under AML/KYC Procedures, and must determine whether any 

such person is a citizen or resident of the United States on the basis of a 

self-certification from the account holder or such person. If any such 

person is a citizen or resident of the United States, the account shall be 

treated as a U.S. Reportable Account. 

3. If the entity account holder is: (i) a U.S. Person that is not a Specified U.S. 

Person; (ii) subject to subparagraph C (4) of this section, a United Kingdom 

Financial Institution or other Partner Jurisdiction Financial Institution; (iii) 

a participating FFI, a deemed-compliant FFI, an exempt beneficial owner, 

or an excepted FFI, as those terms are defined in relevant U.S. Treasury 

Regulations; (iv) an Active NFFE; or (v) a Passive NFFE none of the 

Controlling Persons of which is a U.S. citizen or resident, then the account 

is not a U.S. Reportable Account and no reporting is required with respect 

to the account. 

4. If the entity account holder is a Nonparticipating Financial Institution 

(including a United Kingdom Financial Institution or other Partner 

Jurisdiction Financial Institution that is identified by the IRS as a 

Nonparticipating Financial Institution pursuant to paragraph 2 of Article 5 

of the Agreement), then the account is not a U.S. Reportable Account, but 

payments to the account holder must be reported as contemplated in 

paragraph 1(b) of Article 4 of the Agreement. 
 

VI. Special Rules and Definitions. The following additional rules and definitions apply in 

implementing the due diligence procedures described above: 

A. Reliance on Self-Certifications and Documentary Evidence. A Reporting 

United Kingdom Financial Institution may not rely on a self-certification or 

documentary evidence if the Reporting United Kingdom Financial Institution 

knows or has reason to know that the self-certification or documentary evidence 

is incorrect or unreliable. 

B. Definitions. The following definitions apply for purposes of this Annex I. 

1. AML/KYC Procedures. “AML/KYC Procedures” means the customer 

due diligence procedures of a Reporting United Kingdom Financial 

Institution pursuant to the anti-money laundering or similar requirements of 

the United Kingdom to which such Reporting United Kingdom Financial 

Institution is subject. 

2. NFFE. An “NFFE” means any Non-U.S. Entity that is not an FFI as 

defined in relevant U.S. Treasury Regulations, and also includes any NonU.S. Entity that is resident in the United Kingdom or other Partner 

Jurisdiction and that is not a Financial Institution. 

3. Passive NFFE. A “Passive NFFE” means any NFFE that is not an Active 

NFFE. 

4. Active NFFE. An “Active NFFE” means any NFFE that meets any of the 

following criteria: 

a) Less than 50 percent of the NFFE’s gross income for the preceding 

calendar year or other appropriate reporting period is passive income 

and less than 50 percent of the assets held by the NFFE during the 

preceding calendar year or other appropriate reporting period are 

assets that produce or are held for the production of passive income; 

b) The stock of the NFFE is regularly traded on an established securities 

market or the NFFE is a Related Entity of an Entity the stock of 

which is traded on an established securities market; 

c) The NFFE is organized in a U.S. Territory and all of the owners of the 

payee are bona fide residents of that U.S. Territory; 

d) The NFFE is a non-U.S. government, a government of a U.S. 

Territory, an international organization, a non-U.S. central bank of 

issue, or an Entity wholly owned by one or more of the foregoing; 

e) Substantially all of the activities of the NFFE consist of holding (in 

whole or in part) the outstanding stock of, and providing financing 

and services to, one or more subsidiaries that engage in trades or 
 

businesses other than the business of a Financial Institution, except 

that an NFFE shall not qualify for this status if the NFFE functions 

(or holds itself out) as an investment fund, such as a private equity 

fund, venture capital fund, leveraged buyout fund or any investment 

vehicle whose purpose is to acquire or fund companies and then hold 

interests in those companies as capital assets for investment purposes; 

f) The NFFE is not yet operating a business and has no prior operating 

history, but is investing capital into assets with the intent to operate a 

business other than that of a Financial Institution; provided, that the 

NFFE shall not qualify for this exception after the date that is 24 

months after the date of the initial organization of the NFFE; 

g) The NFFE was not a Financial Institution in the past five years, and is 

in the process of liquidating its assets or is reorganizing with the 

intent to continue or recommence operations in a business other than 

that of a Financial Institution; 

h) The NFFE primarily engages in financing and hedging transactions 

with or for Related Entities that are not Financial Institutions, and 

does not provide financing or hedging services to any Entity that is 

not a Related Entity, provided that the group of any such Related 

Entities is primarily engaged in a business other than that of a 

Financial Institution; or

i) The NFFE meets all of the following requirements: 

(1) It is established and maintained in its country of residence 

exclusively for religious, charitable, scientific, artistic, cultural, 

or educational purposes; 

(2) It is exempt from income tax in its country of residence; 

(3) It has no shareholders or members who have a proprietary or 

beneficial interest in its income or assets; 

(4) The applicable laws of the Entity’s country of residence or the 

Entity’s formation documents do not permit any income or 

assets of the Entity to be distributed to, or applied for the benefit 

of, a private person or non-charitable Entity other than pursuant 

to the conduct of the Entity’s charitable activities, or as payment 

of reasonable compensation for services rendered, or as 

payment representing the fair market value of property which 

the Entity has purchased; and 

(5) The applicable laws of the Entity’s country of residence or the 

Entity’s formation documents require that, upon the Entity’s 

liquidation or dissolution, all of its assets be distributed to a 

governmental Entity or other non-profit organization, or escheat 
 

to the government of the Entity’s country of residence or any 

political subdivision thereof. 

C. Account Balance Aggregation and Currency Translation Rules

1. Aggregation of Individual Accounts. For purposes of determining the 

aggregate balance or value of accounts held by an individual, a Reporting 

United Kingdom Financial Institution shall be required to aggregate all 

accounts maintained by the Reporting United Kingdom Financial 

Institution, or Related Entities, but only to the extent that the Reporting 

United Kingdom Financial Institution’s computerized systems link the 

accounts by reference to a data element such as client number or taxpayer 

identification number, and allow account balances to be aggregated. Each 

holder of a jointly held account shall be attributed the entire balance or 

value of the jointly held account for purposes of applying the aggregation 

requirements described in this paragraph. 

2. Aggregation of Entity Accounts. For purposes of determining the 

aggregate balance or value of accounts held by an Entity, a Reporting 

United Kingdom Financial Institution shall be required to take into account 

all accounts held by Entities that are maintained by the Reporting United 

Kingdom Financial Institution, or Related Entities, to the extent that the 

Reporting United Kingdom Financial Institution’s computerized systems 

link the accounts by reference to a data element such as client number or 

taxpayer identification number and allow account balances to be 

aggregated. 

3. Special Aggregation Rule Applicable to Relationship Managers. For 

purposes of determining the aggregate balance or value of accounts held by 

a person to determine whether an account is a High Value Account, a 

Reporting United Kingdom Financial Institution shall also be required, in 

the case of any accounts that a relationship manager knows or has reason to 

know are directly or indirectly owned, controlled, or established (other than 

in a fiduciary capacity) by the same person, to aggregate all such accounts.

4. Currency Translation Rule. For purposes of determining the balance or 

value of accounts denominated in a currency other than the U.S. dollar, a 

Reporting United Kingdom Financial Institution must convert the dollar 

threshold amounts described in this Annex I into such currency using a 

published spot rate determined as of the last day of the calendar year 

preceding the year in which the Reporting United Kingdom Financial 

Institution is determining the balance or value.

D. Documentary Evidence. For purposes of this Annex I, acceptable documentary 

evidence includes any of the following: 

1. A certificate of residence issued by an appropriate tax official of the country 

in which the payee claims to be a resident. 
 

2. With respect to an individual, any valid identification issued by an 

authorized government body (for example, a government or agency thereof, 

or a municipality), that includes the individual’s name and is typically used 

for identification purposes. 

3. With respect to an Entity, any official documentation issued by an 

authorized government body (for example, a government or agency thereof, 

or a municipality) that includes the name of the Entity and either the 

address of its principal office in the country (or U.S. Territory) in which it 

claims to be a resident or the country (or U.S. Territory) in which the Entity 

was incorporated or organized. 

4. With respect to an account maintained in a jurisdiction with anti-money 

laundering rules that have been approved by the IRS in connection with a 

QI agreement (as described in relevant U.S. Treasury Regulations), any of 

the documents other than a Form W-8 or W-9 referenced in the 

jurisdiction’s attachment to the QI agreement for identifying individuals or 

entities. 

5. Any financial statement, third-party credit report, bankruptcy filing, or U.S. 

Securities and Exchange Commission report. 

 
 

 

ANNEX II 

NON-REPORTING UK FINANCIAL INSTITUTIONS AND PRODUCTS 

General 

This Annex II may be updated by a mutual agreement entered into between the Competent 

Authorities of the United Kingdom and the United States: (1) to include additional entities, 

accounts, and products that present a low risk of being used by U.S. Persons to evade U.S. tax 

and that have similar characteristics to the entities, accounts, and products identified in this 

Annex II as of the date of entry into force of the Agreement; or (2) to remove entities, 

accounts, and products that, due to changes in circumstances, no longer present a low risk of 

being used by U.S. Persons to evade U.S. tax. Procedures for reaching such a mutual 

agreement may be included in the mutual agreement described in paragraph 6 of Article 3 of 

the Agreement.

I. Exempt Beneficial Owners. The following categories of institutions are Non-Reporting 

United Kingdom Financial Institutions that are treated as exempt beneficial owners for 

purposes of section 1471 of the U.S. Internal Revenue Code:

A. UK Governmental Organisations 

 The Devolved Administrations as per: 

o the Northern Ireland Act 1998 (updated by The Northern Ireland (St 

Andrews Agreement) Acts 2006 & 2007, and the Northern Ireland 

Act 2009) 

o the Scotland Act 1998 

o the Government of Wales Act 2006 

 Local Government Authorities as per: 

o Section 33 of the Local Government Act 2003 

o the Local Government Act (NI) 1972 (as amended by The Local 

Government (Miscellaneous Provisions) Act (NI) 2010 and Local 

Government Finance Act (NI) 2011) 

o the Local Government etc. (Scotland) Act 1994 

o the Local Government (Wales) Act 1994 

B. Central Bank 

 The Bank of England and any of its wholly owned subsidiaries. 

C. International Organisations 

Any UK office of: 

 The International Monetary Fund 

 The World Bank 

 The International Bank for Reconstruction and Development 

 The International Finance Corporation 
 

 The International Finance Corporation Order, 1955 (SI 1955 No.1954) 

 The International Development Association 

 The Asian Development Bank 

 The African Development Bank 

 The European Community 

 The European Coal and Steel Community 

 The European Atomic Energy Community 

 The European Investment Bank 

 The European Bank for Reconstruction and Development 

 The OECD Support Fund 

 The Inter-American Development Bank 

D. Retirement Funds 

Any pension scheme or other retirement arrangement established in the United 

Kingdom and described in Article 3 (General Definitions) of the Convention, 

including pension funds or pension schemes covered by IRS Announcement 

2005-30, 2005-1 C.B. 988, on the Mutual Agreement on U.K. Pension 

Agreements. 

II. Deemed-Compliant Financial Institutions. The following categories of institutions are 

Non-Reporting United Kingdom Financial Institutions that are treated as deemed-compliant 

FFIs for purposes of section 1471 of the U.S. Internal Revenue Code:

A. Non-profit Organisations 

 Any entity registered as a charity with the Charity Commission of England 

and Wales 

 Any entity registered with HMRC for charitable tax purposes 

 Any entity registered as a charity with the Office of the Scottish Charity 

Regulator 

 Any Community Amateur Sports Club if registered as such with HMRC 

B. Financial Institutions with a Local Client Base 

1. Any Financial Institution, including any of the entities listed in this 

subparagraph 1, that meets the requirements of subparagraph 2, below: 

 Credit Unions - a body corporate registered under the Industrial and 

Provident Societies Act 1965 as a credit union in accordance with the 

Credit Unions Act or a body corporate registered under the Credit Unions 

(Northern Ireland) Order 1985 or a body corporate registered under the 

Industrial and Provident Societies Act (Northern Ireland) 1969 as a credit 

union 

 Industrial and Provident Societies - an industrial and provident society 

registered or deemed to be registered under the Industrial and Provident 

Societies Act 1965 (c. 12)
 

 Friendly Societies - a friendly society within the meaning of the Friendly 

Societies Act 1992 (c. 40) 

 Building Societies - a building society incorporated or deemed to be 

incorporated under the Building Societies Act 1986 (c. 53) 

 Mutual Societies - as defined in the Building Societies (Funding) and 

Mutual Societies (Transfers) Act 2007 

 Investment Trust Companies - an Investment Trust Company where 

approved under Section 1158 of the Corporation Tax Act 2010 (CTA) and 

meets the requirements of The Investment Trust (Approved Company) 

(Tax) Regulations 2011 (S.I. 2011 No.2999) 

 Venture Capital Trusts – a Venture Capital Trust where approved as such 

by HM Revenue and Customs under Chapter 3 Income Tax Act 2007

2. A Financial Institution meets the requirements of this subparagraph 2 if it meets 

all of the following requirements: 

a). The Financial Institution must be licensed and regulated under the laws of 

the United Kingdom; 

b). The Financial Institution must have no fixed place of business outside the 

United Kingdom; 

 

c). The Financial Institution must not solicit account holders outside the United 

Kingdom. For this purpose, a Financial Institution shall not be considered to 

have solicited account holders outside of the United Kingdom merely 

because it operates a website, provided that the website does not 

specifically indicate that the Financial Institution provides accounts or 

services to nonresidents or otherwise target or solicit U.S. customers; 

d). The Financial Institution must be required under the tax laws of the United 

Kingdom to perform either information reporting or withholding of tax with 

respect to accounts held by residents of the United Kingdom; 

e). At least 98 percent of the accounts by value provided by the Financial 

Institution must be held by residents (including residents that are entities) of 

the United Kingdom or another Member State of the European Union; 

f). Subject to subparagraph 2(g), below, beginning on January 1, 2014, the 

Financial Institution does not provide accounts to (i) any Specified U.S. 

Person who is not a resident of the United Kingdom (including a U.S. 

Person that was a resident of the United Kingdom when the account was 

opened but subsequently ceases to be a resident of the United Kingdom), 

(ii) a Nonparticipating Financial Institution, or (iii) any Passive NFFE with 

Controlling Persons who are U.S. citizens or residents; 

g). On or before January 1, 2014, the Financial Institution must implement 

policies and procedures to monitor whether it provides any account held by 

a person described in subparagraph 2(f), and if such an account is 

discovered, the Financial Institution must report such account as though the 
 

Financial Institution were a Reporting United Kingdom Financial 

Institution or close such account; 

h). With respect to each account that is held by an individual who is not a 

resident of the United Kingdom or by an entity, and that is opened prior to 

the date that the Financial Institution implements the policies and 

procedures described in subparagraph 2(g), above, the Financial Institution 

must review those accounts in accordance with the procedures described in 

Annex I applicable to Preexisting Accounts to identify any U.S. Reportable 

Account or account held by a Nonparticipating Financial Institution, and 

must close any such accounts that were identified, or report on such 

accounts as though the Financial Institution were a Reporting United 

Kingdom Financial Institution; and 

i). Each Related Entity of the Financial Institution must be incorporated or 

organized in the United Kingdom and must meet the requirements set forth 

in this paragraph. 

III. Exempt Products. The following categories of accounts and products established in 

the United Kingdom and maintained by a United Kingdom Financial Institution shall not be 

treated as Financial Accounts, and therefore shall not be U.S. Reportable Accounts, under the 

Agreement:

A. Certain Retirement Accounts or Products 

 Pension schemes registered with HMRC under Part 4 of the Finance Act 

2004 and pension arrangements where the annual contributions are limited 

to £50,000 and funds contributed cannot be accessed before the age of 55 

except in circumstances of serious ill health.

 Those that are UK-registered pension arrangements (including authorised 

payments) as set out in the Finance Act 2004 that are excluded from the 

definition of Financial Account pursuant to Article 1(s)(3) of the 

Agreement.

B. Certain Other Tax-Favoured Accounts or Products 

 Individual Savings Accounts (ISAs) - as defined in the Individual Savings 

Account Regulations 1998 (SI 1998 No.1870) and subsequent Amendment 

Regulations 

 Junior ISAs - as defined in the Individual Savings Account Regulations 

1998 No.1870, and subsequent Amendment Regulations 

 Child Trust Funds - as defined in the Child Trust Funds Act 2004 and 

subsequent Amendment Regulations

 Premium Bonds - where issued by NS&I (UK National Savings and 

Investments)

 Children’s Bonus Bonds - where issued by NS&I (UK National Savings 

and Investments)
 

 Fixed Interest Savings Certificates - where issued by NS&I (UK National 

Savings and Investments) 

 Index Linked Savings Certificates - where issued by NS&I (UK National 

Savings and Investments) 

 Tax Exempt Savings Plans - where issued by a friendly society within the 

meaning of the Friendly Societies Act 1992 (c. 40)

 Save As You Earn Share Option Schemes - approved by HMRC under 

Schedule 3 Income Tax (Earnings and Pensions) Act 2003 

 Share Incentive Plans - approved by HMRC under Schedule 2 Income Tax 

(Earnings and Pensions) Act 2003 

 Company Share Option Plans - approved by HMRC under Schedule 4 

Income Tax (Earnings and Pensions) Act 2003