Although this was not clearly flagged in the Chancellor’s speech, those in the private client industry might have noted the consolidation of various rules on automatic exchange of information (AEOI) in the Spring Finance Bill 2023. AEOI regulations - including the MDRs, the Common Reporting Standard (CRS) and in the US Foreign Account Tax Compliance Act (FATCA) - enable the automatic exchange of tax information between jurisdictions to encourage transparency and compliance through cross-border reporting. Currently in the UK, there are five different sets of rules and powers (the three listed above, as well as Country by Country Reporting (CbCR) and Reporting Rules for Digital Platforms (DP) regulations).
As this measure is a consolidation of existing measures, it should not have any effect on clients, whether they are individuals or businesses. The measure simply consolidates existing powers that allow AEOI regulations to be laid. The amendment is being made in order to simplify the legislation, and will allow the government to implement future AEOI regimes through regulations. The power to lay the Mandatory Disclosure Rules (MDR) regulations will also be subject to a technical amendment so that it works as intended. The new measure will be legislated in the Spring Finance Bill 2023.