The UK Government has entered into agreements with other, international governments known as ‘Automatic Exchange of Information’. The aim of the agreements is to identify whether financial accounts kept outside a customer’s country of citizenship or residency are taxable.
Financial institutions like Clydesdale Bank must tell HM Revenue & Customs about customers with tax citizenship and/or residencies in countries outside the UK covered by these agreements. We must also report any financial accounts held by those customers. HM Revenue& Customs will, in turn, report that information to their non-UK equivalent where relevant.
All of that means we are changing the way we capture customer tax information.