EU Savings Tax Directive

The European Union Savings Tax Directive came into force on 1 July 2005

To broadly summarise the Directive; if you are on the bank's records as being an individual who is resident in an EU member state, the bank is directed to apply a retention tax on any 'savings income' paid to you. Find out how Investec Bank (Channel Islands) Limited will lmplement the Directive.

As an alternative to the Bank's default retention tax, you may elect to authorise the Bank to exchange information with your local EU member tax/revenue authority regarding any bank interest paid to you. In order to do this you will need to complete and return form D1 Permission to exchange information.

Guernsey has also made special provisions for those individuals who are resident in an EU Member State but are not liable for taxation on income which is not remitted to that EU Member State of tax residence, or are exempt from taxation on the income. The special provisions mean that the retention tax will not be deducted under certain circumstances.

The special provisions predominantly apply to those individuals who are resident in the UK for tax purposes but who, by virtue of being non-UK domiciled, are not taxed on Guernsey income where it is not remitted to them in the UK, and who, as a matter of practice do not remit such income.

If you are UK tax resident but not UK domiciled for income tax purposes, and would like to take advantage of the special provisions please complete and return the form D2 Declaration of non-UK domicile status for UK residents.

The information contained herein is of a general nature and may not address the circumstances of a particular individual, and should not be treated as legal, tax or other advice. Should you be unsure of your status with regard to the EU Savings Tax Directive, you should seek independent legal and tax advice.

For further information on the impact of the EU Savings Tax Directive please visit the following website:

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