IEIM405111 | Penalties for Failure to Provide Notification to Individual Reportable Persons

Penalties for Failure to Provide Notification to Individual Reportable Persons

Reporting Financial Institutions are required to notify each individual reportable person, or individual specified US person, that information relating to that person which is required to be reported under the regulations will be reported to HMRC and may be transferred to the government of another territory in accordance with a relevant agreement.

The format of the notification is not prescribed. The notification must be made by 31 January in the calendar year following the first year in which the account held by the individual is a reportable account maintained by the reporting financial institution.

If a Reporting Financial Institution fails to provide such a notification, an initial penalty of up to £100 may apply for each reportable person for which a failure has occurred. If the failure continues after HMRC has issued a notice of assessment of a penalty, then further daily penalties of up to £100 per day may apply. Daily penalties will continue until the notification has been provided.