A customer contacted the bank to ask about the change after they received a rather confusing letter which requested some further details from them
Barclays has issued a warning about a tax check that applies to all customers, with the update coming after a perplexed saver contacted the bank having received a letter requesting some details. The customer said: “Why have I received a letter from you to prove my granddaughter’s age, residency, tax status when she’s only 7 years old and I’m in charge of her ISA account like all my grandkids?” The grandparent added: “You opened the account for us years ago, so you have her details.”
Barclays responded with understanding for the customer’s concern but stated that they were legally required to collect such information. The bank explained: “We’re obliged under tax regulation by law to record tax residency info for all of our customers, including minors even if they don’t require to pay tax.”
They specified that the form must be completed by the trustee or parent with the child’s details. Barclays also said there were sections that the grandparent would need fill out themselves, under the ‘Capacity section’, since the account is under their name. Barclays added: “Once the form has been filled out, you can pop it back into the envelope you’ve shown in your message and the team will update everything.” According to their website, tax regulations mean financial entities have to gather tax residency details from all account holders. Savings institutions are mandated to find out any tax connections a customer may have with other countries and to convey this to the relevant tax bodies.
The bank asserts: “This requirement results from international agreements designed to help tax authorities address tax evasion. This is particularly relevant if someone holds assets in countries where they’re not tax resident and may not be declaring those assets, or income, in their residence territory.”
“Under these agreements, Governments will exchange information about these assets and income with the residence territory.”
