Information on expats opening offshore accounts to be shared with HMRC
Transparency rules aimed at clamping down on tax evasion are now in force, meaning more information will be shared with the UK tax authorities
New tax rules means HMRC will receive more information about expats Photo: Oli Scarff/Getty Images
By Charlotte Beugge
10:42AM BST 08 Jul 2014
2 Comments
Expat savers who remain resident in the UK for tax purposes now have to provide more information when they open offshore bank accounts – to be shared with Her Majesty's Revenue & Customs.
It comes after the US implementation of the Foreign Account Tax Compliance Act (Fatca) which means that American citizens with investments outside the country must report them to the US tax authorities, while foreign financial institutions must disclose information on their US customers or pay a tax penalty.
The UK signed its agreement with the US in 2012 and in the 2013 Budget George Osborne, the Chancellor, announced that there would be an automatic exchange of information between the Crown Dependencies of Jersey, Guernsey and the Isle of Man and HM Revenue & Customs. This is known as the UK Fatca because it is based on the US model.
The measures aim to achieve greater financial transparency and clamp down on tax evasion. However, unlike US citizens who are liable for US tax on their worldwide income, wherever they reside, British expatriates are largely exempt from UK tax on income earned outside the UK.
Santander Private Banking, the Jersey-based subsidiary of Santander UK (santanderpb.je), said the effect of the UK and the US Fatca means that anyone opening an account will now have to comply with the new rules. This also includes existing clients who add a new party to their existing account or who open a joint account.
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The bank said the agreement with the UK “will have a similar effect (to the US Fatca) and will require us to report certain information on clients who are resident in the UK for tax purposes to the Jersey Tax authority who will pass the information to HMRC”.
Its website states: “The effect of both international agreements is that for new accounts opened after July 1 2014 we will be asking all our clients for additional information to enable us to verify their country of tax residence”.
The rules affect new Santander Private Banking clients, and existing ones who add a party to their account or open a new joint account.
Nationwide International (nationwideinternational.com), which is based in the Isle of Man, said the new UK Fatca rules mean that anyone opening a new account will have to provide details of their citizenship and where they are resident for tax purposes.
UK tax residents will have to provide their National Insurance number and those who are a resident for tax purposes of the US or an EU member country must provide their tax identification number.
Transparency rules aimed at clamping down on tax evasion are now in force, meaning more information will be shared with the UK tax authorities
By Charlotte Beugge
10:42AM BST 08 Jul 2014
Expat savers who remain resident in the UK for tax purposes now have to provide more information when they open offshore bank accounts – to be shared with Her Majesty's Revenue & Customs.
It comes after the US implementation of the Foreign Account Tax Compliance Act (Fatca) which means that American citizens with investments outside the country must report them to the US tax authorities, while foreign financial institutions must disclose information on their US customers or pay a tax penalty.
The UK signed its agreement with the US in 2012 and in the 2013 Budget George Osborne, the Chancellor, announced that there would be an automatic exchange of information between the Crown Dependencies of Jersey, Guernsey and the Isle of Man and HM Revenue & Customs. This is known as the UK Fatca because it is based on the US model.
The measures aim to achieve greater financial transparency and clamp down on tax evasion. However, unlike US citizens who are liable for US tax on their worldwide income, wherever they reside, British expatriates are largely exempt from UK tax on income earned outside the UK.
Santander Private Banking, the Jersey-based subsidiary of Santander UK (santanderpb.je), said the effect of the UK and the US Fatca means that anyone opening an account will now have to comply with the new rules. This also includes existing clients who add a new party to their existing account or who open a joint account.
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The bank said the agreement with the UK “will have a similar effect (to the US Fatca) and will require us to report certain information on clients who are resident in the UK for tax purposes to the Jersey Tax authority who will pass the information to HMRC”.
Its website states: “The effect of both international agreements is that for new accounts opened after July 1 2014 we will be asking all our clients for additional information to enable us to verify their country of tax residence”.
The rules affect new Santander Private Banking clients, and existing ones who add a party to their account or open a new joint account.
Nationwide International (nationwideinternational.com), which is based in the Isle of Man, said the new UK Fatca rules mean that anyone opening a new account will have to provide details of their citizenship and where they are resident for tax purposes.
UK tax residents will have to provide their National Insurance number and those who are a resident for tax purposes of the US or an EU member country must provide their tax identification number.
