The definition of offshore advice or services is in regulation 12A(4) of the International Tax Compliance Regulations 2015, as amended by the International Tax Compliance (Customer Notification) Regulations 2016. The definition is relevant in establishing whether a Relevant Person is a Specified Relevant Person.

The obligation will apply to any Relevant Person who, in the course of business, has provided advice or services in the year to 30 September 2016 relating to any of the following that are situated in, or arise from, a participating jurisdiction or the United States of America:

• A financial account (within the meaning of the Common Reporting Standard);
• A source of relevant foreign income, as defined by section 830 of the Income Tax (Trading and Other Income) Act 2005;
• A source of employment income, as defined by section 7(2) of the Income Tax (Earnings and Pensions) Act 2003;
• An asset, as defined by section 21 of the Taxation of Chargeable Gains Act 1992.

In broad terms, this covers sources of self-employment, employment, savings and investment income, and miscellaneous income from participating jurisdictions or the USA. It also covers advice or services relating to financial accounts, entities, and assets within the charge to Capital Gains Tax that are in participating jurisdictions or the USA.

Referring a client to a connected person outside the United Kingdom for the provision of any advice or services is treated as providing offshore advice or services to the client. Connected takes the meaning in section 1122 of the Corporation Tax Act 2010.

The referral may be for any advice or services relating to the individual’s personal tax affairs, not just those meeting the definition of offshore advice or services; the ‘offshore’ element is that the referral is to a party overseas. It does not matter whether the advice was actually provided by the connected party; it is the act of referral that counts.

The notification should be sent to current clients as at 30 September 2016 who are individuals (that is, natural persons rather than legal ones).