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UK Government Issues Further Comments on FATCA
Mel Stride MP wrote a letter to Preet Kaur Gill MP on the issue
We've recently been following developments on a dialogue in the UK Houses of Parliament relating to FATCA, Citizenship Based Taxation and its effect on US Citizens in the UK.
Labour MP Preet Kaur Gill has been discussing the issue with the UK Government on behalf of one of her constituents. Responses on behalf of HM Treasury have been issued by Mel Stride MP, the Financial Secretary to the Treasury.
Mr Stride has recently sent a further letter to Ms Gill relating to the issues she has been raising, and we can share this letter with you (below).
In the letter, Mr Stride explains "The Government appreciates that the US citizenship-based system of taxation has a significant impact on US citizens who are resident for tax purposes in the UK. This poses particular challenges for those who have not lived in the US for a long time or have very few economic ties to the US." Mr Strides goes on to suggest that "this situation arises because the US has a long-established citizenship based approach to taxation, whereas UK tax is based on residence".
Mr Stride concluded the letter by indicating that "UK Treasury officials continue to engage with their US counterparts regarding the situation of 'accidental' US citizens, and the requirement to report information on US citizens who are resident in the UK."
With discussions regarding Citizenship Based Taxation growing by the week, the March/April edition of The American magazine, scheduled for publication before the end of February, will contain articles from two US overseas organizations with their views on the subject. We will also follow developments of Ms Gill's efforts in the Houses of Parliament. Keep an eye on The American's website for more details, and do contact us if you have a view or response to Mr Stride's letter, by e-mailing firstname.lastname@example.org