European Union Savings Tax DirectiveWhat is the European Union Savings Tax Directive?The Directive is European Union law that requires Member States of the European Union to automatically exchange information with each other about customers who earn savings income in one European Union Member State, but live in another. Although the legal scope of the Directive cannot extend outside the European Union its implementation also affected the UK Crown Dependencies (the Channel Islands and Isle of Man) who introduced provisions similar to the directive on 1 July 2005. For the purpose of this fact sheet, when reference is made to the ‘Directive’, this relates to the equivalent measures being implemented in Guernsey. In November 2010, the States of Guernsey ratified the decision to move to Automatic Exchange of Information from 1 January 2011 and no later than 1 July 2011. This decision was taken to support Guernsey’s commitment to maintain the highest standards of tax transparency. How will it affect me?If you are resident in one of the European Union Member States your savings income from your account(s) held in Yorkshire Guernsey will be affected. If you originally opted for Retention Tax, this will still apply to all interest earned by you up to and including 30 June 2011. All Retention Tax deducted prior to 1 July 2011 will be paid to our local Tax Authority, in the usual way, no later than 30 September 2011. Then, with effect from 1 July 2011, all interest earned by you will be subject to Automatic Exchange of Information. (see Point 1 below). If you are not resident in the European Union, please let us know your current address. 1. Automatic Exchange of Information (sometimes referred to as “Disclosure of Information”) Under this option, you will receive gross interest on your account(s) and we are obliged to send details confirming your interest to our local Tax Authorities shortly after 31 December each year. This information will then be forwarded on to the Tax Authority of the country where you reside or where you have advised us that you are resident for tax purposes. In addition to your interest, these details will be accompanied by your name, address and if available your Tax Identification Number (TIN). In the event that we do not currently hold your TIN, we will also be required to pass on details of your date of birth and place of birth. You can provide us with details of your TIN by contacting our office. 2. Exemption from the Directive If you are resident in one of the European Union Member States, but are eligible for exemption under the Directive, then we can ensure that your exempt status is recorded within our system so that none of your personal information, nor details of your savings income is passed on to any relevant tax authority. However, prior to your exempt status being recorded, we will require written confirmation of your exempt status from the relevant tax authority of the EU Member State that you reside in. We reserve the right to ask for updated written confirmation of this status at any time. Where can I go for help?If you have any questions, please contact us on +44 (0) 1481 710150 and we will be happy to help you. Should you require further information on the Directive, we recommend that you contact your independent financial adviser, tax accountant or local Tax Authority. The Guernsey EU savings Directive Guidance notes can be found in pdf format at: The EU legislation for this Directive can be found in PDF format at: For more information about the EU Savings Tax Directive, see European Union Savings Tax Directive fact sheet. |
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