Unexpected request to confirm tax residency - Halifax

booksurr

badmemory wrote: »

It may be valid but it is not the address they were using when this thread was first started. Also the bank did not recognise the phone number on the original letter as one of theirs.

your comment is out of context since the post i quoted and replied to has nothing to do with your comments regarding the content of the very first post. I replied to the facts and statements made in the post i quoted, hence the quote option so people can track why people say what they say

EdSwippet

lisa110rry wrote: »

I have now taken professional advice on this and it seems I should have been completing form 2555 (Foreign Earned Income Exclusion - FEIE) and as I earn less than $100,000 per annum I am exempt.

Before you rest too easy, note that the Foreign Earned Income Exclusion only covers earned income.

If you have investment income -- dividends, interest, premium bonds, rental proceeds and so on -- the FEIE does nothing to shelter this from US tax. If you have any capital gains these might fall inside the UK £11,100 allowance but the US has no such allowance, meaning you could owe US tax on capital gains. The US also limits the tax-free capital gain on home sales, meaning you could be on the hook for US capital gains tax if you sell your house. The US is poor at recognising UK pension schemes, though the US/UK tax treaty may help you out here.

Probably worst of all, though, is that the US does not recognise ISAs as a tax shelter, and compounds tax woes by applying a very punitive tax rate to non-US mutual funds (OEICs, unit trusts, Ireland domiciled ETFs, and so on, all very commonly found in UK ISAs).

smallfry27

I sent all the forms and documents proving my British citizenship to Lloyds over the summer, but they kept loosing them in their system, and said back in August that they would report me to the US anyway. I sent a formal letter of complaint by recorded post, which they have completely ignored.

I only had about £5000 with Lloyds, which I have now moved to Nationwide. Most of my other accounts are ISAs (for which you sign a statement that you are British taxpayer). My only taxable income comes from British government pensions. I await with interest if the US government tries to claim tax on that.

It does seem ludicrous that most banks trust millions of ISA account holders to make a simple declaration of their tax status, yet a few are tying themselves up in bureaucratic knots that are obviously out of control.

badmemory

Please try not to worry too much smallfry it is just the idiot banks running scared because of all the c*** they have participated in in the past. Basically they have no idea what they are doing or who they are doing it too. With any luck now Trump is going to be in it will be open season on anyone. Actually I mean the opposite of open season cos I guess anyone who should actually pay US tax should be able to avoid in the same way as their new president does.

EdSwippet

badmemory wrote: »

... With any luck now Trump is going to be in it will be open season on anyone.

The Republican National Committee's position on FATCA calls for its complete repeal.

Of course, just like in the UK, many US campaign "promises", "pledges" and the like will evaporate like morning mist in sunshine once the new administration takes over.

Cook_County

EdSwippet wrote: »

Before you rest too easy, note that the Foreign Earned Income Exclusion only covers earned income.

If you have investment income -- dividends, interest, premium bonds, rental proceeds and so on -- the FEIE does nothing to shelter this from US tax. If you have any capital gains these might fall inside the UK £11,100 allowance but the US has no such allowance, meaning you could owe US tax on capital gains. The US also limits the tax-free capital gain on home sales, meaning you could be on the hook for US capital gains tax if you sell your house. The US is poor at recognising UK pension schemes, though the US/UK tax treaty may help you out here.

Probably worst of all, though, is that the US does not recognise ISAs as a tax shelter, and compounds tax woes by applying a very punitive tax rate to non-US mutual funds (OEICs, unit trusts, Ireland domiciled ETFs, and so on, all very commonly found in UK ISAs).

Since 2005, when the law changed, the foreign earned income exclusion has only rarely saved tax. You are probably much more scared of FBARs than tax returns; but hopefully the advice you received discussed both streamlined procedures and expatriation as planning ideas with you?

badmemory

EdSwippet wrote: »

The Republican National Committee's position on FATCA calls for its complete repeal.

Of course, just like in the UK, many US campaign "promises", "pledges" and the like will evaporate like morning mist in sunshine once the new administration takes over.

Oh how true. I'll bet they are wondering why so many of us are disillusioned with politicians.

KellyL14

My partner received one from Lloyds today. Lots of red flags:
Paperwork was all black and white (lloyds stuff is always colour)
Addressed to first name & last name (no middle name but Lloyds always address you by last name and last 4 digits of card number)
Letter came from savings director (it isn't a savings account)
It's a joint account - I haven't received one
Letter is generally poorly worded
All information pages are printed (Lloyds LOVE booklets- they have one for everything)
The forms look like they are from a database like an online form or something they use internally. These forms where not headed with logo or company name.
There are 2 different forms like this but they could both fit on one page.
Letter is dated 11 days ago (Lloyds stuff always arrives in a few days)
The supposed 'deadline' is 30/12/16 (seriously? Like 20 days from now over Christmas too?! -unlikely!!)
Also Lloyds have no record of sending it.

Anyone ever have comebacks fro sending/not sending it?
Thanks

badmemory

I would write to them enclosing copies to your local branch & say that you are sending it so that they have information on a fraud being done in their name. In my opinion anyone who fills it in without checking that it is genuine can expect to have any fraud on their account considered to be their own fault. I wrote to them to that effect too. I only got £50 compensation for my worry though. They admitted then that it was badly worded, nothing seems to have improved. Absolutely no connection with USA.

KellyL14

We are due to sign for a house within a fortnight, we can't afford any fraud! - not that there will be any money left after that!!

My partner has been to America on holiday a few times but that's the only link, I've never been.
When I called the bank I made sure they noted down that I wouldn't be sending it until it was varified. I'm take it to a branch next weekend see what they have to say. We only opened the account 6 weeks ago, if they needed anything like this you'd have thought they would have done it then!
I'll be raising hell if it's fake.