Information Sharing Agreements

 
The UK has entered into international information sharing agreements that enable the exchange of information with regards to financial accounts and investments between tax authorities of participating countries to help stop tax evasion.
 
These agreements create a legal obligation for all UK financial institutions including Investec Bank plc to undertake the following:
  • Determine the tax residency of its account holders.
  • Where an account holder is identified as tax resident in one of the participating countries, their account details must be reported to HM Revenue & Customs (HMRC) on an annual basis. This information is expected to be shared with the relevant overseas tax authorities where the account holder is tax resident.
  • Foreign Account Tax Compliance Act (FATCA)

    FATCA is a piece of US legislation that was designed to improve tax compliance by US persons (both individuals and entities), as they are required to report their worldwide income to the US Internal Revenue Service (IRS) on an annual basis, regardless of whether or not they currently reside in the US.
     
    The UK has entered into an Inter-governmental Agreement (IGA) with the US which requires UK Financial institutions to identify and report US account holders to HMRC, who will take responsibility for sharing this information with the IRS.
     
    These obligations came into effect in the UK on 1 July 2014. For further information, please refer to the following:
  • OECD Common Reporting Standard (CRS)

    CRS is a global standard developed by the Organisation for Economic Co-operation and Development (OECD) for the automatic exchange of financial account information between tax authorities worldwide.
     
    While CRS has been established based on the FATCA regime, differences exist between the two regulations and consideration needs to be given to each on a stand-alone basis.
     
    More than 100 countries including the UK have committed to the exchange of information under CRS and a list of participating countries can be found at:
    https://www.oecd.org/tax/transparency/AEOI-commitments.pdf
     
    Under CRS, UK financial institutions including Investec Bank Plc will be required to identify and report on relevant accounts held directly or indirectly by tax residents in any of the overseas participating CRS countries. The reportable information is required to be sent to HMRC, who will then share it with the relevant overseas tax authorities where the account holders are identified as being tax resident.
     
    For further information, please refer to the following:
  • FAQs

    1. What is a reporting period?
    The reporting period operates on a calendar year basis (eg 1 January to 31 December).
     
    2. When will information be reported to HMRC?
    Investec Bank plc is required to submit an annual report to HMRC by 31 May following the end of the prior reporting period. Eg: A report must be submitted by 31 May 2017 for the period 1 January 2016 to 31 December 2016.
     
    3. What happens if my tax residency changes?
    Please notify Investec Bank plc to ensure we hold the correct tax residency status on your accounts, as this may affect whether your account is reported to HMRC and which overseas tax authorities your information is shared with.
     
    4. If I am a UK tax resident, do I need to do comply?
    Yes. You must ensure that you complete any requests for confirmation of your tax residency.
     
    5. What are Investec Self Certification forms and what action is required if I receive one?
    To assist Investec Bank plc in determining an account holder’s countries of tax residence, account holders maybe requested to complete an Investec Bank plc Self certification form, which can be downloaded under the Forms section. Please note failure to return a self certification form following a request from Investec Bank plc will result in an account holder becoming reportable to HMRC.
     
    6. What information will be reported?
    The following information is currently required to be reported in respect of reportable account holders:
    • Name
    • Address
    • Countries of tax residence
    • Tax identification number(s)
    • Account number(s)
    • Account balance
    • Income credited to the account holders account(s)
     
    7. What must I do if I am unsure of my FATCA or CRS classification?
    You should refer to the Explanatory Notes which can be downloaded from the Forms section below. If you require further assistance, please seek guidance from your local tax authorities and/or a tax adviser.
Investec Bank plc is committed to being fully compliant with the above mentioned regulations. In order to do so, we may from time to time request further information and/or documentation from you to confirm your tax status.
If you have relationships with other members of the Investec Group, you may receive more than one request for confirmation of your tax status. It is important that you respond to all such requests.
The above is for information purposes and should not be taken as tax advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. It is recommended that you seek assistance from your local tax authorities and/or a professional tax advisor if you require specific tax advice.