UK: Amendments to International Tax Compliance Regulations

HM Revenue and Customs (HMRC) on June 25, 2025, issued the International Tax Compliance (Amendment) Regulations 2025.

The key changes introduced by these amendments will affect both the FATCA and common reporting standard (CRS) frameworks, as outlined below:

• The deadlines have been extended for financial institutions to meet the criteria for being a “qualified credit card issuer,” and for accounts to qualify as “excluded accounts.”
• The amended regulations now require both reporting financial institutions and specified non-reporting financial institutions to register with HMRC. For current financial institutions, the deadline to register is December 31, 2025.
• The scope of certain compliance obligations, including the requirement to submit specific information requested by HMRC officers to comply with the principal regulations, has now been expanded to cover all financial institutions, instead of only those with reporting status.
• The client notification obligations previously required for specified financial institutions have been removed by the amendments.
• The penalty provisions have been revised to address various non-compliance scenarios, including failure to comply with mandatory registration requirements, failure to apply due diligence procedures, failure to meet record-keeping obligations, failure to obtain valid self-certifications, submission of late returns, submission of inaccurate or incomplete information, failure to notify reportable persons, and failure to supply specific information requested by HMRC officers.

Additionally, a new process has been introduced for reporting financial institutions to notify HMRC if they opt to report gross proceeds from the sale or redemption of financial assets under the CRS and the OECD cryptoasset reporting framework (CARF).

Read a July 2025 report prepared by the KPMG member firm in the UK