The International Tax Compliance Regulations 2015

[^key-703906b1729820aa6300ec8634fab07f]: Regs. 22A-22N inserted (16.7.2025) by The International Tax Compliance (Amendment) Regulations 2025 (S.I. 2025/740), regs. 1(1), 12

[^key-308548da30721ee0edd698df1e9c8f73]: Sch. 3 omitted (16.7.2025) by virtue of The International Tax Compliance (Amendment) Regulations 2025 (S.I. 2025/740), regs. 1(1), 15

...

Interpretation of regulations 12A to 12F

12A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Identifying specified clients: specified financial institution

12B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Identifying specified clients: specified relevant person

12C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Client exchange of tax information notifications

12D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Client exchange of tax information notifications: overseas persons

12E

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Making client exchange of tax information client notifications

12F

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE3

PART1

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART2

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provision of information

12G

• (1) In order to determine whether or not the obligations arising under these Regulations have been complied with, an officer of Revenue and Customs may require a financial institution or UK representative to provide such information as the officer reasonably requires as specified by written notice.

• (2) The information required by notice under paragraph (1) must be provided—

• (a) within such period, being no less than 14 days, and

• (b) by such means and in such form,

as is reasonably required by the officer of Revenue and Customs.

Liable persons

12H

• (1) Where in these regulations—

• (a) a financial institution or UK representative is made liable to a penalty, and

• (b) the institution or representative is a partnership or trust,

the liability to the penalty falls upon a liable person of the institution or representative.

• (2) In paragraph (1), “liable person” means, in relation to—

• (a) a partnership, a partner of the partnership,

• (b) a trust which is not a collective investment scheme, a trustee of the trust, or

• (c) a trust which is a collective investment scheme, a trustee, manager or operator of the scheme.

• (3) In this regulation “collective investment scheme” means—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) any arrangements that are a “collective investment scheme” within the meaning of the Financial Services and Markets Act 2000.

Penalties for failure to comply with Regulations

Daily default penalty

Penalties for inaccurate information

FATCA agreement penalty: non-participating financial institutions

Matters to be disregarded in relation to liability to penalties

Assessment of penalties

Right to appeal against penalty

Procedure on appeal against penalty

Increased daily default penalty

Enforcement of penalties

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reporting of gross proceeds: CRS

7A

• (1) Where a reporting financial institution elects to report the gross proceeds from the sale or redemption of a financial asset which are reported by the reporting financial institution under the OECD Crypto-Asset Reporting Framework in accordance with Section 1G of the CRS, such election must be made by notice to HMRC.

• (2) Notice under paragraph (1) must be given on or before 31st May following the end of the calendar year to which it relates.

• (3) A notice given under paragraph (1) has effect for the calendar year to which it relates, and for all subsequent calendar years until it is withdrawn, including the calendar year in which it is withdrawn.

• (4) The form and manner in which a notice under paragraph (1) is to be given and withdrawn is specified in specific or general directions given by the Commissioners for HMRC under this regulation.

Modifications of reporting requirements: FATCA

Additional due diligence and reporting obligations in relation to payments to a non-participating financial institution: FATCA

Notification to individual reportable persons

Registration with HMRC

10A

• (1) A reporting financial institution and a specified non-reporting financial institution must register with HMRC on or before the later of—

• (a) 31st December 2025, and

• (b) 31st January of the year following the calendar year in which it first falls within the definition in Section VIII (A)(1) of the CRS, Section VIII(B)(1)(e) of the CRS, Article 1(o) of the FATCA agreement or paragraph II(D) of Annex II to the FATCA agreement.

• (2) Registration must be effected by the giving of notice to HMRC.

• (3) A notice under paragraph (2) must contain the information, and be given in the form and manner, specified in specific or general directions given by the Commissioners for HMRC under this regulation.

Non-resident reporting financial institution's UK representative

Use of service providers

Provision of a valid self-certification

12GA

Where a reporting financial institution requests a self-certification from an individual account holder, an entity account holder or a controlling person of an entity account holder (a ‘self-certification provider’), the self-certification provider must provide the self-certification requested—

• (a) in the case of a self-certification under the CRS, in accordance with the requirements of Sections III to VI and the commentary on those sections, and

• (b) in the case of a self-certification under the FATCA agreement, in accordance with the requirements of Annex 1 to that agreement.

Penalties for failure to apply due diligence procedures

22A

• (1) Subject to paragraph (2), if a reporting financial institution or UK representative fails to comply with regulation 3 (due diligence requirements), the reporting financial institution or UK representative is liable to a penalty not exceeding £100 for each account holder or controlling person in respect of which the reporting financial institution or UK representative fails to apply the due diligence procedures in regulation 3(3)(b) or 3(3)(c).

• (2) Where the failure in question is a failure to obtain a valid self-certification required by the CRS or the FATCA agreement, the reporting financial institution is liable to a penalty not exceeding £300 for each account holder or controlling person in respect of which the reporting financial institution or UK representative fails to apply the due diligence procedures in regulation 3(3)(b) or 3(3)(c).

Penalties for failure to comply with record-keeping requirements

22B

• (1) If a reporting financial institution or UK representative fails to comply with regulation 3(2A) or 3(2B) (record-keeping), the reporting financial institution or UK representative is liable to a penalty not exceeding £5,000 for each reportable period in respect of which one or more failures have occurred.

• (2) A failure has occurred in respect of a reportable period if the failure pertains to records which relate to that reportable period for the purposes of regulation 3(1), 3(2) or 3(3).

Penalties for late returns

22C

If a reporting financial institution or UK representative fails to make a return required under regulation 6 (reporting obligation) on or before the date specified in paragraph 6(4), the reporting financial institution or UK representative is liable—

• (a) to a penalty not exceeding £5,000, and

• (b) if the failure continues after notice of an assessment of a penalty under paragraph (a) is issued, to a penalty or penalties not exceeding £600 for each subsequent day on which the failure continues.

Penalties for inaccurate or incomplete returns

22D

If a reporting financial institution or UK representative makes a return under regulation 6(1) (reporting obligation) which contains inaccurate information, or which is incomplete, the reporting financial institution or UK representative is liable to a penalty not exceeding £100 for each account holder or controlling person in respect of which the information in the return is inaccurate or incomplete, where—

• (a) the inaccuracy or incompleteness is deliberate,

• (b) the inaccuracy or incompleteness is due to a failure to take reasonable care, or

• (c) the reporting financial institution or UK representative discovers the inaccuracy or incompleteness some time later and fails to take reasonable steps to inform HMRC.

Penalties for failure to provide notification to individual reportable persons

22E

If a reporting financial institution or UK representative fails to comply with regulation 10 (notification to individual reportable persons), the reporting financial institution or UK representative is liable—

• (a) to a penalty not exceeding £100 for each reportable person in respect of which one or more failures have occurred, and

• (b) if any of the failures continue after notice of an assessment of a penalty under paragraph (a) is issued, to a penalty or penalties not exceeding £100 for each subsequent day on which any of the failures continue.

Penalties for failure to register with HMRC

22F

If a reporting financial institution, specified non-reporting financial institution or UK representative fails to comply with regulation 10A (registration with HMRC), the reporting financial institution, specified non-reporting financial institution or UK representative is liable—

• (a) to a penalty not exceeding £1,000, and

• (b) if the failure continues after notice of an assessment of a penalty under paragraph (a) is issued, to a penalty or penalties not exceeding £300 for each subsequent day on which the failure occurs.

Penalties for failure to provide information

22G

If a financial institution or UK representative fails to comply with regulation 12G (provision of information), the financial institution or UK representative is liable—

• (a) to a penalty not exceeding £5,000, and

• (b) if the failure continues after notice of an assessment of a penalty under paragraph (a) is issued, to a penalty or penalties not exceeding £600 for each subsequent day on which the failure occurs.

Penalties for failure to provide a valid self-certification

22H

If a self-certification provider fails to provide a self-certification under regulation 12GA (provision of a valid self-certification), the self-certification provider is liable to a penalty not exceeding £300—

• (a) where the failure is deliberate, or

• (b) where the failure is due to a failure to take reasonable care.

Reasonable excuse

22I

• (1) Liability to a penalty under regulations 22A to 22H does not arise if the person liable to the penalty satisfies an Officer of Revenue and Customs or, on an appeal notified to the tribunal, the tribunal that there is a reasonable excuse for a failure to do anything required to be done under the applicable regulation.

• (2) For the purposes of this regulation, neither of the following is a reasonable excuse—

• (a) that there is an insufficiency of funds to do something;

• (b) that a person relies upon another person to do something.

• (3) If a person had a reasonable excuse for a failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

Duplication of liability to penalties

22J

• (1) A reporting financial institution or UK representative cannot be liable to penalties under any two or more of regulations 22A (failure to comply with due diligence procedures), 22B (failure to comply with record-keeping requirements), and 22D (inaccurate or incomplete reports) in respect of the same act or omission.

• (2) Where, apart from paragraph (1), a reporting financial institution or UK representative would be so liable, the reporting financial institution or UK representative is liable to a penalty in respect of that act or omission under whichever of regulations 22A, 22B and 22D is, in the opinion of an officer of Revenue and Customs, correct or appropriate in the circumstances.

Assessment of penalties by HMRC

22K

• (1) An officer of Revenue and Customs may make an assessment imposing a penalty under any of regulations 22A to 22H and setting it at such amount as, in the opinion of the officer, is appropriate.

• (2) Notice of an assessment of a penalty under this regulation must—

• (a) be given to the person liable to the penalty,

• (b) state the date on which it is issued and the time within which an appeal against the assessment may be made, and

• (c) in the case of an assessment of a penalty under regulation 22A, 22B, 22C, or 22D, state the reportable period in respect of which the penalty is assessed.

• (3) Subject to paragraph (4), after a notice of assessment of a penalty under this regulation has been given, the assessment must not be altered except on appeal.

• (4) If it is discovered by an officer of Revenue and Customs that the amount of a penalty under regulation 22C(b), 22E(b), 22F(b) or 22G(b) which has been assessed under this regulation is or has become insufficient, the officer may make an assessment in a further amount so that the penalty is set at the amount which, in the opinion of that officer, is appropriate.

Time limits and treatment of penalties

22L

• (1) An assessment of a penalty under regulation 22B, 22C, 22E, 22F or 22G must be made within the period of 12 months beginning with the date on which the person became liable to the penalty.

• (2) An assessment of a penalty under regulation 22A, 22D or 22H must be made—

• (a) within the period of 12 months beginning with the date on which the inaccuracy, incompleteness or failure first came to the attention of an officer of Revenue and Customs, and

• (b) within the period of 6 years beginning with the date on which the reporting financial institution or UK representative became liable to the penalty.

• (3) A penalty assessed under regulation 22K is due and payable at the end of the period of 30 days beginning with the day on which the notice of assessment is issued.

• (4) A penalty assessed under regulation 22K is to be treated for all purposes as if it were tax charged in an assessment and due and payable.

Right to appeal against penalty assessments

22M

An appeal may be brought against a penalty assessment under regulation 22K—

• (a) on the grounds that liability to a penalty under any of regulations 22A to 22H does not arise, or

• (b) as to the amount of a penalty assessed under any of regulations 22A to 22H.

Procedure on appeal

22N

• (1) Notice of an appeal under regulation 22M must—

• (a) state the grounds of appeal, and

• (b) be given—

• (i) in writing;

• (ii) before the end of the period of 30 days beginning with the date on which notice of the assessment under regulation 22K(2) was issued;

• (iii) to HMRC.

• (2) Subject to paragraph (3), the provisions of Part 5 of the Taxes Management Act 1970 relating to appeals have effect in relation to an appeal against an assessment under regulation 22M as they have effect in relation to an appeal against an assessment to income tax.

• (3) On an appeal under regulation 22M that is notified to the tribunal, the tribunal may—

• (a) if it appears that no liability to a penalty has arisen, set the assessment aside,

• (b) if the amount assessed appears to be appropriate, confirm the assessment,

• (c) if the amount assessed appears to be excessive, reduce it to such other amount (including nil) as the tribunal considers appropriate, or

• (d) if the amount assessed appears to be insufficient, increase it to such amount not exceeding the permitted maximum as the tribunal considers appropriate.