FATCA affects the operations of most UK funds. Andrey Krahmal provides a summary
The US Congress enacted the Foreign Account Tax Compliance Act (FATCA) in 2010 to target offshore accounts that were not subject to US information reporting to the Internal Revenue Service (IRS).
FATCA requires non-US entities to register with the IRS and conduct diligence and reporting on their investors and account holders. The law effectively makes foreign financial institutions (FFIs) i.e. those which are non-US information gathering agents of the IRS by threatening an FFI’s own US source income and sale proceeds with a 30% withholding tax.
This regime is not intended to raise revenue for the US government but rather to identify US investors in FFIs. The 30% withholding tax does not apply for example if the relevant FFI...
