The European Union Savings Tax Directive

• You will not be affected - if you reside outside of the EU. Likewise, certain individuals living within the EU will also be exempt. For example, UK resident, non domiciled individuals who are taxed only on a remittance basis are not affected by these changes, provided that they inform us of their circumstances.
• You will be affected - if you reside in the EU, earn interest in any of the other jurisdictions taking part and are not exempt. A list of participating countries and territories may be found in our EU Savings Directive guides (PDF, 232kb)

Although the long-term aim of the directive is exchange of information, there will be more flexible arrangements in some places, including Jersey, Guernsey, the Isle of Man and Gibraltar.

During the transitional period, which is expected to last until at least 2011, our customers who are resident in the EU and earn savings income with us will have the choice between paying retention tax or asking us to exchange information of any interest earned with the local tax authority.

• Retention tax – on behalf of the local authorities we will automatically deduct 20% of any interest earned - increasing to 35% from 1st July 2011.
• Exchanging information - you can ask us to exchange information with the local tax authority instead of deducting the retention tax. If you choose to do this, we will send information on your identity and residence, the amount of savings income earned and the period it relates to our local tax authority. This information is then forwarded to your resident country and may be compared to your domestic tax return.

By choosing to exchange information, you will continue to receive interest without deduction of retention tax. You may choose to exchange information with the local tax authority by completing the election form for exchange of information, found within our EU Savings Directive guides (PDF, 232kb)

The following guides to the EU Savings Directive have been produced to help our customers:

• EU Savings Tax Directive – A Simple Guide (PDF, 232kb)
• EU Savings Tax Directive – Non UK Residents banking in Gibraltar (PDF, 375kb)
• EU Savings Tax Directive – UK Residents banking in Gibraltar (PDF, 1,2Mb)

If in doubt as to you current tax status, you will need to seek independent tax advice or liaise with your Relationship Manager. Alternatively, you can contact your nearest branch.

As long as you live outside the EU and we have evidence to support this, savings income on your bank deposits will fall outside the scope of the directive. However, you will still need to complete the election form for exemption contained within the above Guides.

If you live outside the UK but within the EU and have savings held in Gibraltar, you will need to complete and return the confirmation of residency form, contained in the relevant Guides above, to advise us of your circumstances. If you live outside the EU altogether, savings income on your bank deposits will fall outside the scope of the directive. Once you have completed and returned the confirmation of residency form, neither retention tax or exchange of information will apply.