Elizabeth Jackson Posted April 24, 2021 Share Posted April 24, 2021 I have been a citizen of Australia since 2007 and in Aus for 20 years. I opened a Lloyds bank account when I was a teenager in the 80’s, and still have it and regularly use it. I haven’t ever thought about informing the bank of any change of address as it’s been easier just to keep my mother’s address in UK on there. All has been fine until Lloyds sent me a letter saying I need to confirm my country of residence. The letter is very US-skewed, for some reason - I have no idea if they think I now live in US (I have no ties to US at all). If I confirm my country of residence as Australia, what tax implications does that have? Thanks Quote Link to comment Share on other sites More sharing options...
Marisawright Posted April 24, 2021 Share Posted April 24, 2021 If you have only a small amount of money in the account then it's unlikely to have any tax implications at all. I would be cautious in case the letter is some kind of scam. What information do they ask you to supply ? Quote Link to comment Share on other sites More sharing options...
Eera Posted April 25, 2021 Share Posted April 25, 2021 (edited) I had one of these from Citibank, I questioned it with them as it was going on about declaring taxes for the US and it seemed a bit scammy. Citi confirmed it was actually genuine and gave the reason for it : "Please be advised that the form is required to enable Citi to determine our customers tax residency(ies) to comply with our obligations under CRS. Penalties may apply (under local and other laws) if you provide false or misleading information". I basically told them it was stupid as I've never had anything to do with the US and don't bother me with it again. Nothing has happened since. If it's the same thing you can probably safely ignore it. Edited April 25, 2021 by Eera 2 1 Quote Link to comment Share on other sites More sharing options...
Wanderer Returns Posted April 25, 2021 Share Posted April 25, 2021 (edited) 5 hours ago, Elizabeth Jackson said: I have been a citizen of Australia since 2007 and in Aus for 20 years. I opened a Lloyds bank account when I was a teenager in the 80’s, and still have it and regularly use it. I haven’t ever thought about informing the bank of any change of address as it’s been easier just to keep my mother’s address in UK on there. All has been fine until Lloyds sent me a letter saying I need to confirm my country of residence. The letter is very US-skewed, for some reason - I have no idea if they think I now live in US (I have no ties to US at all). If I confirm my country of residence as Australia, what tax implications does that have? Thanks 5 hours ago, Marisawright said: If you have only a small amount of money in the account then it's unlikely to have any tax implications at all. I would be cautious in case the letter is some kind of scam. What information do they ask you to supply ? It's not a scam. My wife and I received similar letters from Tesco Bank when we changed our address from the UK to Australia. Tesco also told me on the phone that I'd need to close the account within 6 months if I wasn't returning to the UK, because the account was only for UK residents. You will have to check what Lloyds' policy is on this. There have been some legal changes in the UK in recent years, and the HMRC now requires that banks verify the tax residency of account holders where account activity suggests they may live overseas. The emphasis of your letter may have been on US citizens because they are required to complete an annual tax return wherever they reside, but now tax offices around the world share information more freely with their counterparts in other countries. I guess we have the David Camerons of this world to thank for that! I'd hazard a guess that Lloyds has flagged your ATM card being used in Australia over a long period of time (more than just a holiday). Back to the letter... we just put ours in the bin because they wanted a load of information including certified copies of our passports etc. Tesco will no doubt report back to HMRC that they believe we are tax resident in Australia, which will likely have no effect whatsoever as we are in fact living, working and paying our taxes in Australia. Where you might get caught out is if you have earnings in the UK which aren't being declared over here, and the ATO suddenly becomes aware of that courtesy of the HMRC. I doubt that they'll be interested in the 200 quid coming from you mum though Edited April 25, 2021 by Wanderer Returns 1 1 Quote Link to comment Share on other sites More sharing options...
Wanderer Returns Posted April 25, 2021 Share Posted April 25, 2021 2 hours ago, Eera said: I had one of these from Citibank, I questioned it with them as it was going on about declaring taxes for the US and it seemed a bit scammy. Citi confirmed it was actually genuine and gave the reason for it : "Please be advised that the form is required to enable Citi to determine our customers tax residency(ies) to comply with our obligations under CRS. Penalties may apply (under local and other laws) if you provide false or misleading information". I basically told them it was stupid as I've never had anything to do with the US and don't bother me with it again. Nothing has happened since. If it's the same thing you can probably safely ignore it. I've had a Citibank account for donkeys' years and I just read this week that they are shutting down their domestic banking operations in 12 countries, including Australia, so I guess we'll be getting another letter from them soon! Quote Link to comment Share on other sites More sharing options...
Eera Posted April 25, 2021 Share Posted April 25, 2021 1 hour ago, Wanderer Returns said: I've had a Citibank account for donkeys' years and I just read this week that they are shutting down their domestic banking operations in 12 countries, including Australia, so I guess we'll be getting another letter from them soon! Really? There's my savings account having to go elsewhere. Went them as thy have no overseas withdrawal fees on their debt cards. Bummer Quote Link to comment Share on other sites More sharing options...
rtritudr Posted April 25, 2021 Share Posted April 25, 2021 2 minutes ago, Eera said: Really? There's my savings account having to go elsewhere. Went them as thy have no overseas withdrawal fees on their debt cards. Bummer Citibank selling their Australian operations doesn't necessarily mean that the accounts will be closed. In fact, if anything the accounts will be the most valuable part of Citibank Australia for them to sell. So just sit tight and watch the space. You won't have to do anything unless the new owners decide to change the way the debit card/bank account works. 2 Quote Link to comment Share on other sites More sharing options...
Wanderer Returns Posted April 25, 2021 Share Posted April 25, 2021 2 hours ago, rtritudr said: Citibank selling their Australian operations doesn't necessarily mean that the accounts will be closed. In fact, if anything the accounts will be the most valuable part of Citibank Australia for them to sell. So just sit tight and watch the space. You won't have to do anything unless the new owners decide to change the way the debit card/bank account works. It would be good if they didn't, although I had a UK Citibank account which they closed about 10 years ago now. It was really convenient for transferring money between the UK and Australia because the accounts were linked, so it was like doing an internal transfer without any fees. Quote Link to comment Share on other sites More sharing options...
Wanderer Returns Posted April 25, 2021 Share Posted April 25, 2021 2 hours ago, rtritudr said: Citibank selling their Australian operations doesn't necessarily mean that the accounts will be closed. In fact, if anything the accounts will be the most valuable part of Citibank Australia for them to sell. So just sit tight and watch the space. You won't have to do anything unless the new owners decide to change the way the debit card/bank account works. UBank have a savings account (USave) which pays a whopping 1.1% interest if you deposit $200/month - it's worth considering. https://www.ubank.com.au/banking-overview/savings-accounts Quote Link to comment Share on other sites More sharing options...
Elizabeth Jackson Posted April 25, 2021 Author Share Posted April 25, 2021 Thanks everyone for the advice. I called Lloyds bank who told me that all Lloyds customers have been sent the same letter and that it’s up to the customer to complete it or not - they recommend doing it but it’s not compulsory (although they’ll probably continue to send letters until you do). Also they allow overseas residents to hold accounts; you don’t have to be a UK resident to have or open an account. So as I don’t see what benefit it is to me to complete the form, I probably won’t. 1 Quote Link to comment Share on other sites More sharing options...
Ken Posted April 25, 2021 Share Posted April 25, 2021 2 hours ago, Elizabeth Jackson said: Thanks everyone for the advice. I called Lloyds bank who told me that all Lloyds customers have been sent the same letter and that it’s up to the customer to complete it or not - they recommend doing it but it’s not compulsory (although they’ll probably continue to send letters until you do). Also they allow overseas residents to hold accounts; you don’t have to be a UK resident to have or open an account. So as I don’t see what benefit it is to me to complete the form, I probably won’t. I'm sure they will keep sending it as about every 6 months I get a letter from HSBC for me to complete - I always refuse to do it because I don't have an HSBC account (they've got my contact details from my son's Child Trust Fund account which obviously we can't do anything with until he turns 18). Quote Link to comment Share on other sites More sharing options...
rtritudr Posted April 26, 2021 Share Posted April 26, 2021 17 hours ago, Wanderer Returns said: It would be good if they didn't, although I had a UK Citibank account which they closed about 10 years ago now. It was really convenient for transferring money between the UK and Australia because the accounts were linked, so it was like doing an internal transfer without any fees. HSBC still offers the same service and the transfers are instant. But it's fee-free only if you hold Premier status (or above). 1 Quote Link to comment Share on other sites More sharing options...
JetBlast Posted April 26, 2021 Share Posted April 26, 2021 11 hours ago, rtritudr said: HSBC still offers the same service and the transfers are instant. But it's fee-free only if you hold Premier status (or above). This isn't correct. Advance account holders don't pay any fees either. 1 Quote Link to comment Share on other sites More sharing options...
Cup Final 1973 Posted May 5, 2021 Share Posted May 5, 2021 But why would you use a bank to transfer funds? The rates are usually dismal. Quote Link to comment Share on other sites More sharing options...
JetBlast Posted May 5, 2021 Share Posted May 5, 2021 21 minutes ago, Cup Final 1973 said: But why would you use a bank to transfer funds? The rates are usually dismal. It depends on the bank... Quote Link to comment Share on other sites More sharing options...
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