Which UK banks accept HMRC form R105?

Henners10101

I'm moving overseas for a couple of years for work purposes in September.

In my case I'll become non-resident and not ordinarily resident from the date I leave the country, so the UK will lose its right to tax any interest earned on cash savings held with UK banks - but according to HM Revenue & Customs this is only the case if no tax is withheld from that interest at source. Otherwise there is apparently no way of reclaiming the withheld tax (20%)notwithstanding the fact that the UK doesn't have taxation rights on this income (as a non resident I would also not be entitled to a UK personal allowance).

I know that it is possible to have banks pay interest gross by filling in a form from HMRC called a R105. However not all banks will accept this form. Can you tell me which banks do please? It is harder work than you'd think to find this information from banks' websites!

Any help would be gratefully received!

Mikeyorks

HMRC hold an (unpublished) list populated by historic responses from participating Banks. If you ring HMRC(SSO) - telephone number on the R105 - they should be able to help.

Extract below from one of the HMRC bulletins :-

Form R105 – who accepts it?

In TDSI Mailshot 5, issued 30 January 2004, we asked you to tell us whether you accepted the form R105. Many of you replied and our Helpline staff find this information useful when speaking to our customers. We would like to update this list. By having this information we can:

• help customers by saving them the time and effort of phoning you to check
• help you by reducing the numbers of unnecessary calls to your branches
• help us because we will be able to give the correct information.

This information will not be published by us. We will only use it when answering telephone queries

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Henners10101

Thanks I gave them a call and you were quite right Mikey. Although they won't give you the complete list over the phone they are willing to confirm whether particular banks accept the form or not.

Cook_County

Your assumption on UK tax is however false.

You only escape UK tax on interest credited onshore in complete years of non-UK residence. This is why offshore accounts are more sensible.

You will of course doubtless owe tax on the interest in your new country of residence in any case as well as on any UK ISAs etc.

Henners10101

Cook_County could you please give me a reference for your comment re escaping liability only on full years of non-residence? I had thought that interest income would be taxable in the UK only to the extent that tax is suffered as source from the date of departure - on the basis that split year treatment is granted by concession.

Fortunately I won't have any income tax liability overseas as I am going to Cayman.

thanks

Captainkeen

Hi Henners10101,

I'm working in Saudi I'd appreciate it if you could tell me which bank accept the R105 form. Thank you.

Captinkeen

Henners10101

Captain Keen I called the HMRC on the number on the R105 and they told me that the Halifax and HSBC both accept this form. ALthough they have a full list of banks which accept the form they will not give this out, rather the approach they take is to tell you whether a given bank you name will accept it or not. I would give them a call as I didn''t run every bank's name past them.

jonesMUFCforever

I think LTSB won't accept it.
You would have to open an account offshore.

Jonbvn

Banking offshore is by far the best way to go, when you are non-resident. Having been an expat for several years, I used several of the high street banks based in Jersey.

The only draw-back is that a lot of the offshore banks have minimum deposit requirements. Usually anywhere from £5k+.

senaiboy

Just to update, Alliance & Leicester does not accept the R105 form anymore since 1st January 2004.

However, the guy that I spoke to (the HMRC number) said the tax can be claimed back using the R43 form.