FATCA (Foreign Account Tax Compliance Act) is an American provision enacted in March 2010 and aimed at foreign financial institutions. It is part of a larger piece of legislation: Hiring Incentives to Restore Employment Act, designed to ensure that American citizens are fully disclosing their worldwide income to the US Internal Revenue Service.
Prior to the 2008 Budget, non-domiciliaries were not required to pay UK tax on income and gains generated from outside the UK provided that it was not remitted to the UK (remittance basis). The 2008 Budget saw the introduction of the £30,000 non-domicile levy and this has been subject to change since.
The tax return white space is the innocuous looking ‘any other information’ space at box 19 of the main SA100 tax return. It is more important than it looks, as the case of Charlton and Others v HMRC illustrates.
A list of most relevant HMRC links that includes:How to fill in your tax return, residence, remittance basis etc. notes,Capital gains summary notes, UK property notes, Additional information notes, and many more
Generally, a 'reasonable excuse' is when some unforeseeable or unusual event beyond somebody's control has prevented that person from filing the return on time. For example:
a failure in the HMRC computer system,a serious illness, disability or serious mental health condition has made the taxpayer incapable of filing the tax return etc.
Capital gains tax on property held by non-UK residents
The UK government issued a consultation document in March 2014 on implementing a capital gains tax charge on gains made on UK residential property disposals by non-residents. The charge is expected to take effect from April 2015.
As business becomes ever more global and the workforce more mobile, accountants will often need to consider issues such as residence, domicile and the remittance basis: issues that would have been much rarer just a generation ago.