EU savings directive
HMRC have published version 8 of their guidance notes re the European Union Savings Directive. Under the Directive, which was agreed back in June 2003, information will be collected about the payment of savings income to residents in certain other countries and exchanged automatically with tax authorities in those countries.
The new version of the guidance notes makes a number of amendments and corrections, e.g. to cross-references and contact details.
The main changes of substance from the previous version of the notes are as follows:
- Paragraphs 115A, 118 – 118B, 121 – 123, 125 – 127 and 131 – changes affecting the reporting of sales/redemption proceeds in relation to United Kingdom authorised investment funds as a result of the revision of the assets test from 40% to 25% effective from 1 January 2011.
- Paragraphs 90, 93 – 96A, 111 – 111C and 114 – changes following the end of the grandfathering period at 31 December 2010 for certain types of bonds.
- Paragraphs 260 – 281 – changes reflecting alterations to the returns process and format and HMRC internal changes. These amendments do not alter the substance of what is required of paying agents.
- Appendix 1 – changes as a result of Belgium ceasing to be within the transitional arrangements from 1 January 2010.
HMRC also have a webpage with further information including details for UK residents with money invested overseas.