The Department of State refers to the Embassy of the United Kingdom 

of Great Britain and Northern Ireland's Note no. 044/2013 dated June 3, 2013, 

proposing to amend the 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 FA TCA, signed 

September 12, 2012 ("the Agreement"), and which reads as follows: 

''The Embassy of the United Kingdom of Great Britain and Northern 

Ireland presents its compliments to the United States Department of State and 

refers to the Agreement between the Government of the United Kingdom of 

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

America to Improve International Tax Compliance and to Implement FATCA, 

signed on 12 September 20 12 ("the Agreement") which has n•)t yet entered 

into force. 

F oUowing discussions between the Competent Authorities of the United 

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

America, the Embassy of the United Kingdom of Great Britain and Northern 

Ireland proposes, on behalf of the Government of the United Kingdom of 

Great Britain and Northern Ireland that the Agreement be amended by deleting 

Annex II and replacing it with the following: 

DIPLOMATIC NOTE 
"ANNEX II 

NON-REPORTING UK FINANCIAL INSTITUTIONS ANI;t PRODUCTS 

General 

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

Authorities ofthe United Kingdom and the United States: (I) 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 (:~) 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 pan.graph 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 ofthe U.S. Internal Revenue Code: 

A. UK Governmental Organisations, any political subdivision of the UK 

Government or any whollv owned agency or instrumentality of any one or more of the 

foregoing including: 

• The Devolved Administrations as per: 

o the Northern Ireland Act I 998 (updated by The l''orthern Ireland (St 

Andrews Agreement) Acts 2006 & 2007, and the l\orthern 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) 20 I 0 and Local 

Government Finance Act (Nl) 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.l954) 

• 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 estatlished 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. 

• The UK Pension Protection Fund 

fl. 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 ofthe U.S. Internal Revenue Code: 

A. Charitable Organisations 

• Any entity registered as a charity with the Charity Commissio1 of England and 

Wales 

• Any entity registered with HMRC for charitable tax purposes 

• Any entity registered as a charity with the Office of the Scotti h Charity Regulator 

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

B. Financial Institutions with a Local Client Base 

I. Any Financial Institution, including, but not limited to, any o ' the entities listed in 

this subparagraph I, 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 ar d provident society 

registered or deemed to be registered under the Industrial and Provident Societies 

Act 1965 (c. 12) 

• Friendly Societies - a friendl y society within the meaning of the Friendly 

Societies Act 1992 (c. 40) 

• Building Societies- a building society incorporated or deerrcd 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 

• Community Interest Companies - as defined in the Community Interest 

Company (Amendment) Regulations 2009. 

• Investment Trust Companies - an Investment Trust Company where approved 

under Section 1158 of the Corporation Tax Act 20 I 0 (CTA) and meets the 

requirements of The Investment Trust (Approved Company) (Tax) Regulations 

20 II (S.f. 20 II 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 regulat,!d under the laws of 

the United Kingdom; 

b). The Financial Institution docs not have a fixed place of business outside the 

United Kingdom. For this purpose, a fixed place of busi 1ess does not include 

a location that is not advertised to the public and from which the Financial 

Institution performs solely administrative functions. 

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 fo r or services to 

nonresidents or otherwise target or solicit U.S. customers or account holders. 

A Financial Institution will also not be considered to have solicited 

customers or account holders outside its country )f incorporation or 

organisation merely because it advertises in print media or on a radio or 

television station that is distributed or aired primarily within its country of 

incorporation or organisation but is also incidentally d stributed or aired in 

other countries, provided that the advertisement does 10t indicate that the 

Financial Institution maintains accounts for or p10vides services to 

nonresidents and does not otherwise target or solicit U.S. customers or 

account holders. 
d). The Financial Institution must be required under the tcx laws of the United 

Kingdom to perform either information reporting or withholding of tax with 

respect to accounts held by residents of the United King:lom; 

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

fnstitution must be held by residents (including residen :s that are entities) of 

the Un ited Kingdom or another Member State of the Eu ·opean 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 (induding 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 my account held by a 

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

the Financial Institution must report such account as :hough the Financial 

Institution were a Reporting United Kingdom Financia l 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 tha : is opened prior to 

the date that the Financial Institution implements the po .icies and procedures 

described in subparagraph 2(g), above, the Financial In:;titution must review 

those accounts in accordance with the procedures d(·scribed in Annex I 

applicable to Preexisting Accounts to identify any U.S. Reportable Account 

or account held by a onparticipating 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 that is a Financial Institution 

must be incorporated or organized in the United Kingdom and, with the 

exception of any Related Entity that is a retirement fund described in 

paragraphs A through D of section II of this Anne:< II must meet the 

requirements set forth in this paragraph. 

j) The Financial Institution must not have policies or practices that discriminate 

against opening or maintaining Financial Accounts for individuals who arc 

Specified U.S. Persons and residents ofthe United Kingcom. 
D 

C Certain Collective Investment Vehicles 

In the case of an Investment Entity that is a collective investment vehicle 

regulated under the laws of the United Kingdom: 

a) if all of the interests in the collective investment vehicle (including debt 

interests in excess of $50,000) are held by or through one or more Financial 

Institutions that are not Nonparticipating Financia I Institutions, such 

collective investment vehicle will be treated as a deem:::d-compliant FFJ for 

purposes of section 1471 of the U.S. Internal Rev•mue Code, and the 

reporting obligations of any Investment Entity (other than a Financial 

Institution through which interests in the collective investment vehicle are 

held) will be deemed fulfilled with respect to interests in the collective 

investment vehicle; or 

b) if the collective investment vehicle is not describ::d in paragraph (a), 

consistent with paragraph 3 of Article 5 of the Agreement, ifthe information 

required to be reported by the collective investment vehicle under the 

Agreement with respect to interests in the collective investment vehicle is 

reported by the collective investment vehicle or anoth(:r Investment Entity, 

the reporting obligations of all other Investment Entiti !S required to report 

with respect to the interests in the collective investment vehicle will be 

deemed fulfilled with respect to such interests. 

Trustee-Documented Trusts 

A trust established in the United Kingdom to the extent that the trustee of the 

trust is a Reporting U.S. Financial institution, Reporting Model I FFI, or 

Participating FFI and reports all information required to Je reported pursuant 

to the Agreement with respect to all U.S. Reportable Ace au nts of the trust. 

Ill. 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. Report<.ble Accounts, under 

the Agreement: 

A. Certain Retirement Accounts or Products 

• Pension schemes registered with HMRC under Part 4 of the Finance Act 2004, and 

non registered 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 de 1nition of Financial 

Account pursuant to Article 1 (s)(3) of the Agreement. 
• An account maintained in the United Kingdom excluded from the definition of 

Financial Account under an agreement between the United States and another 

Partner Jurisdiction to facilitate the implementation of FATCA, provided that such 

account is subject to the same requirements and oversight ur der the laws of such 

other Partner Jurisdiction as if such account were establi ;hed in that Partner 

Jurisdiction and maintained by a Partner Jurisdiction Financial Institution in that 

Partner Jurisdiction. 

• Immediate Needs Annuities qualifying as such under Section 725 Income Tax 

(Trading and Other Income) Act 2005. 

B. Certain Other Tax-Favoured Accounts or .Products 

• Individual Savings Accounts (ISAs) - as defined in th ~ Individual Savings 

Account Regulations 1998 (SI 1998 No. l870) and subsequent Amendment 

Regulations 

• Junior ISAs - as defined in the Individual Savings Account Regulations 1998 

No.l870, 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 &tional Savings and 

Investments) 

• Children's Bonus Bonds - where issued by NS&I (UK National Savings and 

Investments) 

• Fixed Interest Savings Certificates - where issued by \lS&I (UK National 

Savings and Investments) 

• Index Linked Savings Certificates - where issued by S&I (UK National 

Savings and Investments) 

• Tax Exempt Savings Plans - where issued by a friendly society within the 

meaning ofthe 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 Sch ~dule 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' 

If this proposal is acceptable to the Government of the United States •>f America, the 

Embassy of the United Kingdom of Great Britain and orthern Ireland further proposes that 

this Note together with the United States Department of State's affirmative Note of reply 

shall constitute an agreement between our two Governments which shall enter into force on 

the date on which the Agreement enters into force under Article I 0. 1, namely on the date of 

the second note by which the Government of the United Kingdom of Great Britain and 

Northern Ireland and the Government of the United States of America nGtifY each other that 

they have completed their necessary internal procedures for entry into force ofthe 

Agreement. 
The Embassy of the United Kingdom of Great Britain and Northern I eland avails itself of 

this opportunity to renew to the United States Department of State the as;uranccs of its 

highest consideration." 

The Department confirms that the foregoing proposals are acceptable to the 

Government of the United States of America and this Note of reply and Note no 

044/2013, dated June 3, 2013 from the Embassy shall constitute an ~greement 

between our two Governments amending the Agreement which shall enter into force 

on the date on which the Agreement enters into force pursuant to Atticle 1 0.1 . 

. D~rtment of State, au Washington, June 7, 2013. 
Note No: 044 I 2013 

British Embassy 

Washington D.C 

The Embassy of the United Kingdom of Great Britain and Northern Ireland presents its 

compliments to the United States Department of State and refers to the Agreement 

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

and the Government of the United States of America to Improve International Tax 

Compliance and to Implement FATCA, signed on 12 September 2012 ("the Agreement") 

which has not yet entered into force. 

Following discussions between the Competent Authorities of the United Kingdom of 

Great Britain and Northern Ireland and the United States of America, the Embassy of 

the United Kingdom of Great Britain and Northern Ireland proposes, on behalf of the 

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

Agreement be amended by deleting Annex II and replacing it with the following: 
"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 NonReporting 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, any political subdivision of the UK 

Government or any wholly owned agency or instrumentality of any one or more of 

the foregoing including: 

• 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. 

• The UK Pension Protection Fund 

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

are Non-Reporting United Kingdom Financial Institutions that are treated as deemedcompliant FFis for purposes of section 1471 of the U.S. Internal Revenue Code: 

A. Charitable 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, but not limited to, 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 

• Community Interest Companies - as defined in the Community 

Interest Company (Amendment) Regulations 2009. 

• Investment Trust Companies - an Investment Trust Company where 

approved under Section 1158 of the Corporation Tax Act 201 0 (CT A) 

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 does not have a fixed place of business outside 

the United Kingdom. For this purpose, a fixed place of business does 
not include a location that is not advertised to the public and from which 

the Financial Institution performs solely administrative functions. 

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 for or services to nonresidents or otherwise target or 

solicit U.S. customers or account holders. A Financial Institution will 

also not be considered to have solicited customers or account holders 

outside its country of incorporation or organisation merely because it 

advertises in print media or on a radio or television station that is 

distributed or aired primarily within its country of incorporation or 

organisation but is also incidentally distributed or aired in other 

countries, provided that the advertisement does not indicate that the 

Financial Institution maintains accounts for or provides services to 

nonresidents and does not otherwise target or solicit U.S. customers or 

account holders. 

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 that is a Financial 

Institution must be incorporated or organized in the United Kingdom 

and, with the exception of any Related Entity that is a retirement fund 
described in paragraphs A through D of section II of this Annex II must 

meet the requirements set forth in this paragraph. 

j) The Financial Institution must not have policies or practices that 

discriminate against opening or maintaining Financial Accounts for 

individuals who are Specified U.S. Persons and residents of the United 

Kingdom. 

C Certain Collective Investment Vehicles 

In the case of an Investment Entity that is a collective investment vehicle 

regulated under the laws of the United Kingdom : 

a) if all of the interests in the collective investment vehicle (including debt 

interests in excess of $50,000) are held by or through one or more 

Financial Institutions that are not Nonparticipating Financial Institutions, 

such collective investment vehicle will be treated as a deemed-compliant 

FFI for purposes of section 1471 of the U.S. Internal Revenue Code, and 

the reporting obligations of any Investment Entity (other than a Financial 

Institution through which interests in the collective investment vehicle are 

held) will be deemed fulfilled with respect to interests in the collective 

investment vehicle; or 

b) if the collective investment vehicle is not described in paragraph (a), 

consistent with paragraph 3 of Article 5 of the Agreement, if the 

information required to be reported by the collective investment vehicle 

under the Agreement with respect to interests in the collective investment 

vehicle is reported by the collective investment vehicle or another 
D 

Investment Entity, the reporting obligations of all other Investment Entities 

required to report with respect to the interests in the collective investment 

vehicle will be deemed fulfilled with respect to such interests. 

Trustee-Documented Trusts 

A trust established in the United Kingdom to the extent that the trustee of 

the trust is a Reporting U.S. Financial Institution, Reporting Model 1 FFI, 

or Participating FFI and reports all information required to be reported 

pursuant to the Agreement with respect to all U.S. Reportable Accounts of 

the trust. 

Ill. 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 non registered 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. 

• An account maintained in the United Kingdom excluded from the definition 

of Financial Account under an agreement between the United States and 

another Partner Jurisdiction to facilitate the implementation of FATCA, 

provided that such account is subject to the same requirements and 

oversight under the laws of such other Partner Jurisdiction as if such 

account were established in that Partner Jurisdiction and maintained by a 

Partner Jurisdiction Financial Institution in that Partner Jurisdiction. 

• Immediate Needs Annuities qualifying as such under Section 725 

Income Tax (Trading and Other Income) Act 2005. 

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&l (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" 

If this proposal is acceptable to the Government of the United States of America, the 

Embassy of the United Kingdom of Great Britain and Northern Ireland further proposes 

that this Note together with the United States Department of State's affirmative Note of 

reply shall constitute an agreement between our two Governments which shall enter 

into force on the date on which the Agreement enters into force under Article 1 0.1, 

namely on the date of the second note by which the Government of the United Kingdom 

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

America notify each other that they have completed their necessary internal procedures 

for entry into force of the Agreement. 

The Embassy of the United Kingdom of Great Britain and Northern Ireland avails itself 

of this opportunity to renew to the United States Department of State the assurances of 

its highest consideration. 

3 June 2013