Discussion
Asking on behalf of relative on missus side.
Wife's uncle left UK and left his son in charge of house which is rented out. Both opened joint business account for rent.
Son's name in account to facilitate any account management if required but he gets none of rent income.
Account was setup around 3 years ago and there's no company created. A business name was put down the account on advise of bank personnel. A contract exist with a rent management company which manages all aspects of the rent. As far as I'm told there were no other transactions in account except payments from tenants and payments to management company. Payment to contractors (electrician, plumber etc.) were made via management company.
Son recently got forms from HSBC to declare FATCA, never had this before. So far had been advised to declare as Passive NFFE possibly with no controlling persons. I've told him to send documents back to his dad in HK and let his dad's attorney's deal with it.
I would appreciate any advice please.
Wife's uncle left UK and left his son in charge of house which is rented out. Both opened joint business account for rent.
Son's name in account to facilitate any account management if required but he gets none of rent income.
Account was setup around 3 years ago and there's no company created. A business name was put down the account on advise of bank personnel. A contract exist with a rent management company which manages all aspects of the rent. As far as I'm told there were no other transactions in account except payments from tenants and payments to management company. Payment to contractors (electrician, plumber etc.) were made via management company.
Son recently got forms from HSBC to declare FATCA, never had this before. So far had been advised to declare as Passive NFFE possibly with no controlling persons. I've told him to send documents back to his dad in HK and let his dad's attorney's deal with it.
I would appreciate any advice please.
CorbynForTheBin said:
Are they asking for the company number etc? They'll probably be checking the data they hold and remediating any gaps - it sounds like this may cause some issues...
Best to be 100% up front, they'll exit the relationship if it doesn't add up.
Definitely will be 100% upfront but just puzzled why opening the account was easy years ago. Apparently they weren't aware of all this, was told to open 2 business accounts and just give a company name even though there's none!Best to be 100% up front, they'll exit the relationship if it doesn't add up.
Got reply from excellent local tax advisor and he said FACTA only applies for US residents or if someone has assets/links to US.
So I would suggest him going back to back and clarify with bank. Saw the documents sent and besides being threatening (freeze assets, fine etc.) there were no mention about US as all. Not helpful.
So I would suggest him going back to back and clarify with bank. Saw the documents sent and besides being threatening (freeze assets, fine etc.) there were no mention about US as all. Not helpful.
crazy about cars said:
Got reply from excellent local tax advisor and he said FACTA only applies for US residents or if someone has assets/links to US.
So I would suggest him going back to back and clarify with bank. Saw the documents sent and besides being threatening (freeze assets, fine etc.) there were no mention about US as all. Not helpful.
Not strictly true. FATCA is a US thing but there is also UK FATCA. All the banks I deal with have basically said, give us the FATCA forms by x date or the account will be closed and we will send you a cheque for any balance. Some accounts have millions in them.So I would suggest him going back to back and clarify with bank. Saw the documents sent and besides being threatening (freeze assets, fine etc.) there were no mention about US as all. Not helpful.
An NFFE has no reporting obligations. The reporting is completed on the controllers on a look through basis. Have UK or US owners and there will be reporting of sorts. I think NFFE's reporting is completed by the banks and not the NFFE which I don't like as you are taken out of the reporting loop.
Passive NFFE is the correct designation for a rental business I.e you have an asset, it produces income with you doing nothing. However if there is no company I am not sure what the definition of entity is under FATCA.
Edited by megapixels83 on Wednesday 11th November 07:04
Gassing Station | Finance | Top of Page | What's New | My Stuff