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Lloyds Bank International Limited Legal Information / Common Reporting Standard
Lloyds Bank International Limited Legal Information
Tax regulators around the world are adopting a new standard with the Automatic Exchange of financial Information (AEoI) between tax authorities in certain countries. This legislation is known as the Common Reporting Standard (CRS) and is seen as a critical tool in the world wide fight against tax evasion. To date, more than 100 countries, including the UK, Islands (Jersey, Guernsey, Isle of Man) have committed to adopting the Common Reporting Standard.
To comply with the CRS, participating jurisdictions must obtain certain customer information from their Financial Institutions and exchange that information on an annual basis with other Participating Jurisdictions.
In the UK, our first CRS report to HM Revenue and Customs (HMRC) in respect of customers we have identified as ‘Reportable Persons’ is required by 31 May 2017.
Under the CRS, Lloyds Bank is required to identify customers who are tax resident in one country but with financial accounts held in another for inter-jurisdiction reporting purposes. To do this we need to collect and report certain information on the ‘reportable person’ and their financial account(s) to the local tax authorities.
Most customers will not need to do anything. The majority of our customers will be identified as UK resident for tax purposes in the UK and therefore not ‘reportable’. However, there will be some customers who based on the information we hold, we believe to be ‘reportable persons’ or ‘reportable entities’.
If we feel we need further information we will write to you asking you to complete a ‘Tax Residency self-certification form’. In some cases we will ask you for a reasonable explanation or additional documentary evidence as proof of tax residency. We may also write to you asking you to contact us so we can update the information we hold on you such as your Tax Payer Identification Number (TIN) or date of birth.
If you are affected by the CRS we may write to you asking you to either call us or to fill in a Tax Residency self-certification form. We will let you know what we need you to do.
Lloyds Bank is obliged to report to the local tax authority, the customers with a financial account who are tax resident in another participating jurisdiction. The local tax authority will then pass this information onto the participating jurisdiction where it has been established that the customers are resident for tax purposes.
There has been significant coverage on CRS and there are many information resources available, including on HM Revenue and Customs (HMRC) or local tax authorities’ websites. In the first instance, you may like to look at the OECD website where more in-depth technical information on the rules governing tax residency have been published by each national tax authority.
We have put these FAQs together to help you understand the Common Reporting Standard (CRS) legislation introduced in 2016 and why Lloyds Bank needs to comply as it plays its part in the world-wide fight against tax evasion.
It is intended to answer any questions you may have following the customers mailing which started in September 2016.
Important Note: Lloyds Bank cannot provide help or advice to customers on Common Reporting Standard (CRS) or any other tax related matter.
If your questions are not answered by the literature or FAQs sent with the letter or, if you do not understand your tax obligations, you may need to decide if you want to seek independent tax advice from a tax or financial advisor.
The Common Reporting Standard (CRS) is a global standard for the automatic exchange of financial account information between governments around the world to help fight against tax evasion and protect the integrity of systems.
It requires all Banks and Financial Institutions including Lloyds Bank who operate in CRS participating countries to gather certain customer information and report it to local tax authorities.
Lloyds Bank together with other financial institutions across the world is required to comply with the Common Reporting Standard requirements with respect to due diligence and reporting. Lloyds Bank is required to identify and report customers that are resident in a participating jurisdiction for tax purposes and are holding a financial account in another.
Lloyds Bank needs to comply with CRS legislation. We are obliged under CRS to identify and report customers to HM Revenue and Customs (HMRC) or their local tax authority if we understand them to have a tax residency in a participating jurisdiction which is different to the jurisdiction where the account is held. To do this we need to collect and report certain information relating to their tax residency status.
All banks and their branches in other participating jurisdictions are legally obliged to comply with Common Reporting Standard regulatory requirements.
There may be a number of reasons why we have contacted you, depending on circumstances. We have contacted those customers where we have information that leads us to believe they are resident for tax purposes in the UK or a CRS country, as applicable.
For individual customers with account(s) in a participating jurisdiction, this is usually based on:
For entities with account(s) in a participating CRS jurisdiction, this is usually based on:
Lloyds Bank is obliged under the Common Reporting Standard to report those customers to local tax authority if we have information on them which leads us to believe they hold a financial account and are resident for tax purposes in one of the CRS participating jurisdictions. We think that some of the information we hold on you is missing or incomplete, for this reason, we need to ask you for this so we can understand if we need to send your details to the local tax authority.
A customer may be reported to local tax authority if we have information on them which leads us to believe they hold a financial account and are resident for tax purposes in one of the CRS participating jurisdictions.
Under the regulations similar information that we were reporting under FATCA and CDOT must be reported under CRS. That is:
For Individuals/Controlling Persons
CRS applies to certain accounts with investment features such as savings, current accounts, cash value life insurance and certain other investments. However, CRS regulations allow for certain exceptions such as lending products and loans.
If you have closed your account during the reporting year we may still send you a letter asking you to confirm where you were resident for tax purposes. We may still need to report you to the local tax authorities where the account is held. We will only report you for the year in which the account was closed.
If you do not complete and return the self-certification form back to us then we are required to report the information we hold about your account to the local tax authority who will share it with the relevant local tax authority.
We understand that you may be unhappy that we shall be reporting you as tax resident in the UK or a CRS country to HMRC (or their overseas tax authority). However, we are legally obliged to comply with CRS legislation, which has been introduced into law and the information we hold on you leads us to believe that you are resident for tax purposes in a participating CRS jurisdiction.
If you do not believe we should be sharing your information with the local tax authority you should contact us and advise us. We will re-issue a tax residency self-certification form which you should complete and return along with a reasonable explanation or any documentary proof requested such as a passport/driving licence as proof of residency for tax purposes.
It may be that you will receive more than one letter. As it is a Lloyds Bank Group policy to talk to our customers under each brand they hold with us you may receive letters from different Lloyds Banking Group brands. For example: if you hold accounts with Bank of Scotland and Halifax you will receive a request to complete a tax residency self-certification form from each brand. You may also receive requests from other financial institutions if you have accounts with them. You should complete every request.
Following the United States of America (US) Foreign Account Tax Compliance Act (FATCA) legislation and the Crown Dependencies and Overseas Territories (CDOTs) legislation, the UK has committed to the Common Reporting Standard (CRS) and the automatic exchange of information with other participating jurisdictions throughout the world. The CRS agreements are separate to the FATCA/CDOT agreements.
No. We are required by law to share this data with relevant tax authorities. Under the terms of the Data Protection Notice (DPN) contained in your product terms and conditions we are not required to obtain
consent in such circumstances.
If you are unhappy that we have asked you to complete the tax residency self-certification form which we have sent you asking you provide your country(ies) of tax residence & TIN to allow us to confirm where you are tax resident as we are obliged to do under the Common Reporting Standard legislation please refer to our Complaint process.
Below are some quick definitions of some common tax compliance jargon.
© Copyright 2019 Lloyds Bank International
Lloyds Bank International Limited, a Jersey registered and regulated bank, is a subsidiary of Lloyds Bank Corporate Markets
plc, a UK Non-ring-fenced Bank. Both companies are part of Lloyds Banking Group plc and are independent from Lloyds
Bank plc which is Lloyds Banking Group’s ring-fenced, UK regulated retail and commercial bank. For more information on
ring-fencing visit international.lloydsbank.com/ringfencing
Our products and services are offered by Lloyds Bank International Limited & Lloyds Investment Fund Managers Limited.
See company Information. Whilst our services will be available to many customers, there are countries where, due to legal
or regulatory restraints, we cannot provide them.
Rules and regulations made under the UK Financial Services and Markets Act 2000 for the protection of depositors and
investors, including the Financial Services Compensation Scheme, do not apply to the financial services business of
companies within the Lloyds Banking Group carried out from offices outside of the United Kingdom.
Lloyds Bank International Limited. Registered office and principal place of business: 11-12 Esplanade, St Helier, Jersey, JE2
3QA. Lloyds Bank International Limited is incorporated in Jersey No. 4029 and is regulated by the Jersey Financial Services
Commission to carry on deposit-taking business under the Banking Business (Jersey) Law 1991 and investment and general
insurance mediation business under the Financial Services (Jersey) Law 1998. Lloyds Bank International Limited subscribes
to the Jersey Code of Practice for Consumer Lending and has also notified the Jersey Financial Services Commission that it
carries on money service business.
The Guernsey branch of Lloyds Bank International Limited, principal place of business PO Box 136, Sarnia House, Le
Truchot, St Peter Port, Guernsey, GY1 4EN, is licensed by the Guernsey Financial Services Commission to take deposits and
to carry on controlled investment business and insurance intermediary business under The Banking Supervision (Bailiwick
of Guernsey) Law, 1994, The Protection of Investors (Bailiwick of Guernsey) Law, 1987 (as amended) and The Insurance
Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002 (as amended), respectively, and is also
registered with the Guernsey Financial Services Commission as a money service provider.
The Isle of Man branch of Lloyds Bank International Limited of PO Box 111, Peveril Buildings, Peveril Square, Douglas, Isle
of Man IM99 1JJ is licensed by the Isle of Man Financial Services Authority to conduct deposit-taking and investment
business and is also registered as an insurance intermediary in respect of general business.
Lloyds Bank International Limited is a Jersey registered company that is a wholly owned subsidiary of Lloyds Bank
Corporate Markets plc. Lloyds Bank Corporate Markets plc is incorporated in the United Kingdom, is authorised by the
Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority
under number 763256, and is part of the Lloyds Banking Group. Lloyds Bank International Limited places funds with Lloyds
Bank Corporate Markets plc and thus its financial standing is linked to that of the group. Depositors may wish to form their
own view on the financial standing of Lloyds Bank International Limited and its parent based upon publicly available
information. Download Lloyds Bank International Limited’s latest annual financial statements
Lloyds Investment Fund Managers Limited. Registered office: 11-12 Esplanade, St Helier, Jersey, JE2 3QA. Authorised by the
Jersey Financial Services Commission under the Collective Investment Funds (Jersey) Law 1988.