HSBC tax compliance letter?

tiredoflife

I received a letter this morning from hsbc asking me to confirm details for tax compliance regulations. Listed my details and said if everything was correct to discard the letter. Anyone any ideas what this is about? Haven't had anything like this before?

TomJ

It's because HSBC trade in the USA. The Yanks have said that in order to be able to do so, banks have to report information about accounts held overseas by any US taxpayer. In order to do that, the banks have to check who is a US tax payer.

jumeriah64

Yes is exactly that...don't panic, we received same from our bank at Cater Allen. Our FA said exactly the same as the other poster.

He completed the form and drafted a letter and all was good.

tiredoflife

Thanks for the replies. It's a basic account and I havent actually used it yet. I'm not a US tax payer?
The letter has no form attached, just lists my demographics and says ignore if all the same.
Guessing it's as you guys say and standard procedure.

jumeriah64

tiredoflife wrote: »

Thanks for the replies. It's a basic account and I havent actually used it yet. I'm not a US tax payer?
The letter has no form attached, just lists my demographics and says ignore if all the same.
Guessing it's as you guys say and standard procedure.

Yeah it is....think in our case it wasn't because of employer...my employers head office is just outside Tokyo :-)

It was because our bank had a significant proportion of US based customers working and based here in the UK.

Apparently US citizens are taxed as US citizens no matter where in the world they work. Think is only US folk and one other country who do that. So as a result the bank itself is asked to hunt them down!

Nothing to worry over. I did till my better informed FA explained.

tiredoflife

But I'm not an American?! I'm British.

badmemory

I had the same from the halifax. I've never been to america - not even got dollar travellers cheques back when they were a good idea. At least yours doesn't appear to have come with the threat that if you don't reply they will report you.

There are several threads about this issue.

Ballard

tiredoflife wrote: »

But I'm not an American?! I'm British.

They just want you to confirm that. It's all about keeping the Americans off their back so that they can continue to trade in the US and in US Dollars.

It's a mystery to me why some people get asked and others don't. I've been asked whether I'm liable to tax in other jurisdictions a few times at the account opening stage but I also have existing accounts where I've never been asked. Perhaps they just have to ask a 'reasonable percentage' of their customers to keep the US FATCA people happy.

It's obvious to banks that you're liable to US tax if you only have a US passport but it's those people with dual nationality that the banks have to guard against. Boris Johnson eventually renounced his US citizenship.

Although it'd be a shock for anyone unaware of this rule to receive letters such as this it's nothing to worry about and more of a pain in the 'arris to the bank to comply that it is to the customer.

Westie983

I got one a couple of days ago because I opened a regular saver, I just shredded the paperwork as it was correct, I am not a tax payer in the US, and all details were right.

jumeriah64

tiredoflife wrote: »

But I'm not an American?! I'm British.

It's the bank customer basis, not your nationality....I'm also not American but seems banks with a higher than normal normal US customer ration are asked to do it

meer53

I deal with account applications and existing customers. All new applications ask the Tax residency question, existing customers are sent letters asking them to confirm where they are registered for Tax if the bank doesnt already hold this information. It's nothing to worry about.