Your questions on tax answered by Martin Copland of Ashdown Hurrey
Question: I have recently received a letter from my bank asking me to confirm my tax status. Do I need to complete this as I have always been a UK citizen?
From 2016, H M Revenue and Customs are getting an unprecedented amount of information about people’s overseas accounts, structures, trusts and investments, from more than 100 jurisdictions worldwide, thanks to agreements to increase global tax transparency. The level of information will increase over a short period of time, so that broadly they will receive the same kind of information as they receive in the UK for any UK income.
H M Revenue and Customs are running a campaign to notify taxpayers that if their tax affairs need to be brought up-to-date, time is limited before higher levels of penalties will be levied, as they use the information to target those who have failed to return relevant sources of income.
If you do receive any foreign income, and this has been disclosed on your self-assessment tax return each year, this does not affect you.
However, if you have any foreign sources of income, whether it is bank interest or investment income, rental income or income from trusts or estates, that you have not previously disclosed, we advise that you notify H M Revenue and Customs as soon as possible. The penalty regime applying to an individual who has self-disclosed will be less severe than for someone who is identified by H M Revenue and Customs itself.
Your bank has written to you as I assume you have a foreign bank account. Even as a UK citizen, you will need to complete the form to confirm your tax jurisdiction so that the appropriate information can be exchanged between the correct countries.
If you would like any assistance with any additional disclosures to H M Revenue and Customs or completing the form, please contact us.
Call Martin Copland on 01424 720222 or email [email protected]