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Where Taxpayers and Advisers Meet

HMRC reporting UK bank accounts to overseas authorities

beneix
Posts:1
Joined:Thu May 20, 2021 5:00 pm
HMRC reporting UK bank accounts to overseas authorities

Postby beneix » Thu May 20, 2021 5:07 pm

I understand that individuals with bank accounts in the UK but who are resident overseas fall under the requirement for the bank to report these accounts to the HMRC under the Common Reporting Standard. I am trying to understand how this impacts the flow of information to overseas authorities:

1. If the individual has a UK address registered with the UK bank, will the UK bank regard the individual as not falling under the CRS reporting requirement? Don't banks anyway report bank accounts to the UK, even for UK residents?
2. If the bank still forwards the information about the bank account to the HMRC, does the HMRC then use the (UK) address specified by the bank, or whatever address that the HMRC has for the individual, to determine whether to forward any information to the foreign authority?

pawncob
Posts:4745
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: HMRC reporting UK bank accounts to overseas authorities

Postby pawncob » Mon May 24, 2021 11:48 am

Unless you tell the bank you live abroad, they'll assume that the UK address is valid. They'll report untaxed interest to HMRC and HMRC will use your last advised UK address to correspond with you.
This won't apply to you because I assume you informed HMRC of your departure from the UK. The bank won't notify foreign authorities of the interest because they believe that you're UK resident.
Read B on P29. https://read.oecd-ilibrary.org/taxation/standard-for-automatic-exchange-of-financial-account-information-for-tax-matters_9789264216525-en#page29
With a pinch of salt take what I say, but don't exceed your RDA


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