Amy is an Associate in the Private Client Team and specialises in the administration of high value and complex estates of both UK and international individuals.
She has significant experience negotiating with HM Revenue and Customs on technical matters such as property valuations, inheritance tax calculations, lifetime gifting and domicile for inheritance tax purposes.
The UK regulatory framework, and the global reporting requirements, in relation to trusts and other wealth-holding structures is becoming increasingly complex and onerous.
Our Private Wealth Regulatory team advises trustees, other fiduciary service providers, companies and individuals on their reporting obligations under the UK’s ever increasing regulatory framework, and the global reporting issues that they also need to consider, in relation to the trusts and other wealth holding structures they create and manage.
This area is becoming increasingly complex and the penalties for non-compliance, both financial and reputational, are significant.
The OECD introduced the Common Reporting Standard (“CRS”) to help combat tax evasion by individuals using accounts and structures in jurisdictions other than in the jurisdiction in which they are resident i.e. a FATCA for the rest of the world, which draws heavily on the approach taken to implementing FATCA (see our separate FATCA summary here). The CRS is multilateral in nature compared to FATCA and some US specific features of FATCA (such as a definition of “US Person”) are not relevant to the CRS. Within the CRS framework, FIs must report information for exchange between tax authorities in the signatory jurisdictions.
The CRS applies in jurisdictions that have signed up to the CRS. Financial Institutions (“FIs”) in so-called CRS Participating Jurisdictions are subject to active obligations to comply with the requirements of the CRS.
Like FATCA, the CRS introduced a standard set of due diligence procedures pursuant to which FIs must identify Account Holders and Controlling Persons who are Account Holders of Financial Accounts which they maintain. Account Holders are reportable under CRS if they are resident in a CRS Participating Jurisdiction other than the CRS Participating Jurisdiction in which the Financial Institution is resident. The CRS is not backed by sanctions in the same way as FATCA, and CRS Participating Jurisdictions are responsible for enforcing CRS compliance at a domestic level.
The Foreign Account Tax Compliance Act (“FATCA”) is part of the US Hiring Incentives to Restore Employment Act which was enacted in 2010. The main objective of FATCA is to combat tax evasion by US Persons using non-US accounts and structures. It works by requiring non-US Financial Institutions (“FIs”) to report directly (or indirectly via their own tax authorities) to the US Internal Revenue Service (“IRS”) any (non-US) assets held by their US Account Holders, with significant sanctions (see below) for non-compliance.
Everyone – FATCA works on the premise that every person could potentially be a US Person and therefore unless positive steps are taken to prove that someone is not a US Person, they will be treated as a US Person for FATCA purposes.
All FIs must register (or be registered) on the FATCA Portal and obtain a GIIN as evidence of compliance (or, where permitted by FATCA, ensure they are covered by the GIIN of another FI). FIs must identify the Account Holders of the Financial Accounts they maintain and report information about Account Holders or Controlling Persons who are US Persons annually. There are complex definitions and specified due diligence procedures for identifying Account Holders depending on the type of FI concerned. Non-Financial Foreign Entities (“NFFEs”) with over 50% of their income being passive (as defined for FATCA purposes) must be reported upon by any FIs with which they interact (rather than reporting direct).
FATCA may apply directly via the US Regulations (in which case FIs report directly to the IRS) or it may apply via an Intergovernmental Agreement between the USA and another jurisdiction (in which FIs report to their own tax authority respectively), depending on the jurisdiction in which an FI is located. Sanctions for non-compliance include (but are not limited to):
The Trust Registration Service (TRS) is HMRC’s register of the beneficial ownership of trusts.
From 6 October 2020 the scope of trusts required to register was extended to nearly all express trusts, not just those with a UK tax liability. Now all UK express trusts and some non-UK express trusts need to register, subject to some specific exclusions.
Trusts with a UK tax liability had to register on TRS by 31 January (or 5 October in some cases) following the end of the tax year in which the trust had a liability to UK tax. Following the extension, non-taxable trusts are required to register on the TRS by 10 March 2022, however HMRC has stated that this deadline will be extended as the online portal does not allow these trusts to register yet. Penalties starting at £100 can be charged for failing to register on TRS or updating the register when there has been a change.
Read more about The Register of Overseas Entities and how it applies to trusts here.
The Register of Persons with Significant Control (PSC) is a free to access public register including personal details about the individuals who own or control companies.
Who does it apply to?
Officers from UK companies and LLPs are required to identify the individuals with significant control over their companies and confirm their information, record their details on the company register, provide this information to Companies House and update any details that change. A PSC is someone that holds more than 25% of shares or voting rights in a company, has the right to appoint or remove the majority of the board of directors or otherwise exercises significant influence or control over the company.
What are the key requirements/dates/penalties?
Failing to provide information on the PSC register or providing inaccurate information is a criminal offence and could result in a fine or a prison sentence of up to two years.
The team advise on all relevant issues, including the information that affected persons must collect, maintain and report, and the form that reporting should take. They also advise on how to proceed when there has been a complete or partial failure to report appropriately.
Please note that we do not advise financial services firms or institutions in relation to their own regulatory obligations as governed by the Financial Conduct Authority (FCA) or Prudential Regulation Authority (PRA).
Partner, Private Client
Partner, Private Client
Counsel, Private Client
Senior Associate, Private Client
Senior Associate, Private Client
Legal Assistant, Corporate
In addition to providing for the needs of their families, successful individuals often harbour wider ambitions to use their wealth to make a positive impact. For many, philanthropy and charitable giving are an important part of the family’s wealth management strategy. Our private client lawyers have the expertise to help you find the best way to support the causes that are most important to you.
Charitable donations and bequests often require careful management within the context of a wider succession plan. We can advise you on tax efficient giving as well as on larger scale endeavours, such as setting up a grant making charitable foundation or trust.
Our Private Client team have the specialist knowledge to help you develop a philanthropy strategy that will bring your vision to life. We will also ensure charitable and philanthropic endeavours are integrated into your family’s overall wealth and succession plans so that they are balanced against the other needs of the family.
Our expertise in charity law, charity governance and tax mean we are ideally placed to support you with your philanthropic and charitable endeavours.
Individuals are faced with an everchanging tax landscape both in the UK and globally. The interaction between different tax regimes is complex and will differ depending on your personal circumstances.
With the right advice, effective tax planning can unlock opportunities to make use of available tax reliefs and optimise your global tax exposure. Timing is key. Seeking advice before taking action can make a big difference. Planning ahead, be it prior to moving jurisdiction, buying or selling property or exiting a business, will enable you to put in place the necessary structures to organise your affairs as efficiently as possible.
Forsters’ Private Client tax lawyers have the in-depth technical knowledge and commercial acumen to advise you on the full breadth of UK taxes, setting out your options in a clear and pragmatic manner. For business owners we can draw upon specialists in corporate, corporate tax, real estate and employment to manage the interaction between business and personal taxes, and ensure that you received joined up advice. Crucially we always consider UK tax planning opportunities within the context of your wider wealth planning objectives.
Within an international context, we regularly co-ordinate cross-border tax advice. We have strong connections with professionals around the globe and can work with them and any of your existing advisers, to achieve the best overall outcome.
Moving to the UK is an exciting life event whether it be a short-term move for work to explore business prospects or a more permanent relocation with the whole family; the UK offers an eclectic range of options to live, work and learn.
Moving to the UK
Helping you grow, preserve and protect what matters most to you, remains at the heart of what we do. We were founded as a private wealth firm and for more than 20 years we have served individuals and families in the UK and internationally, supporting them on all aspects of their wealth, property and business matters. Today, our award winning private wealth practice is ranked top in the latest editions of the Chambers HNW Guide and the Legal 500.
Our teams work collaboratively to provide you with a joined-up service and a complete private client experience. From buying and investing in property, companies, art and luxury assets, through to family wealth planning including trusts, succession planning and family offices. We also advise on tax, regulation, employment, disputes and immigration.
Our approach is defined by building a deep understanding of your life, your needs and what you want to achieve. We develop genuine relationships and take a personal approach, always with your commercial objectives in mind. This is how we deliver exceptional advice and the reason why our clients choose us to serve them across generations.