Tax regulations

Tax regulations require us to collect information about the tax residency of our customers. The aim of these tax regulations is to combat tax evasion.

Common Reporting Standard for Automatic Exchange of Financial Account Information (CRS)

As part of tax authorities' efforts to combat tax evasion, significant benefits have been identified in being able to access information on offshore accounts held by residents in all foreign jurisdications, not just the US. G8/G20 countries therefore agreed to develop a global reporting standard using the existing FATCA framework as a starting point, and CRS was enacted into law by the European Union in 2014.

Effective 1 January 2016, all customers (except Pensions, Local Authorities and other Financial Institutions who are also reporting on their customers) are required to tell us the countries in which they are resident for tax purposes.

Foreign Account Tax Compliance Act (FATCA)

Introduced by the United States Department of Treasury and the US Internal Revenue Service (IRS), FATCA aims to increase tax compliance by US persons / organisations.

Financial Institutions in the UK are required as a matter of UK law to seek answers to certain questions for purposes of identifying those accounts which are reportable to HMRC and in turn to the IRS in connection with FATCA.

Customers of Financial Institutions, such as Close Brothers, must provide the answers to those specific FATCA questions. If customers do not provide all of the necessary details, the Financial Institution may be obliged to include details in the annual FATCA return to HMRC.

Please be advised that in order to determine whether or not you are a tax resident offshore we may require you to complete a Self-certification form.

How does this affect you?

Close Brothers will contact you at the account opening stage if you need to complete and return the relevant self-certification form:

Business customers

Organisations will be required to confirm their entity type under FATCA classifications by the completion of a Close Brothers self-certification form. Classification of entity type will generally determine whether your account will be reportable to HMRC.

Tax residency - Self-certification declaration form for Entities and Trusts

Close Brothers cannot offer any advice relating to FATCA. For further FATCA information please speak to your Tax Adviser or refer to the following websites:

Frequently asked questions

Q. I do not have any foreign currency deposits with you, do I still have to return the self-certification form you sent to me?

A. The currency of the deposit that you hold with Close Brothers does not have a bearing on the need to complete and return the self-certification form. The form is designed to capture the tax residency of our customers, and in some instances the tax residency of any Controlling Persons associated with our Entity customers.


Q. What does the term Entity mean?

A. An Entity is the general term given to any non-personal customer by HMRC. Therefore a Company, a Trust, an Association or a Society would all be classed as an Entity.


Q. What does the term ‘Controlling Person’ mean?

A. The term ‘Controlling Person’ refers to a natural person who exercises control over an Entity. In the case of a Trust, this term refers to the Settlor, the Trustees and the Beneficiaries. For Companies, this would be any shareholder with a stake of 25% or more in the Company.


Q. I am solely a UK tax-payer, do I still have to return the self-certification form you sent to me?

A. Yes. Close Brothers is still required by HMRC to obtain this confirmation by way of a completed self-certification form. Depending on your classification, you may also be required to provide tax residency information for controlling persons associated with the Entity (if applicable).


Q. If I am completing the self-certification form on behalf of an Entity, but do not know which classification I am, where can I find this out?

A. Every Entity will qualify for one of the four classification categories listed on the self-certification form even if it may not be immediately obvious which classification of entity type is relevant. These are the four classifications specified by HMRC, and more information on each classification can be found by navigating to the Automatic Exchange of Financial Information page on the HMRC website.


Q. I still do not know which classification I am, can you help?

A. Many non-financial companies and Trusts will either be an Active Non Financial Entity (NFE) or a Passive NFE. The difference between these two classification types to an extent depends on the type of income generated and assets held, which is information that Close Brothers cannot access via public sources. The eligibility criteria are listed in the self-certification form Annex.


Q.What if I have completed the self-certification form incorrectly?

A. If you have not ticked ‘Yes’ to one of the four classification boxes, or not completed an additional section as requested on Page 1 (depending on which box you have ticked), the form will be returned to you to complete again.


Q. What are the consequences of not completing and returning the self-certification form?

A. Any customers not co-operating in completing and returning the self-certification form will automatically become reportable to HMRC.


Q. Who should I speak to if I have any further questions?

A. As Close Brothers Treasury do not offer advice, we recommend that you speak to your Financial Adviser or Accountant where relevant. Alternatively, you can contact HMRC on 03000 576 748 (opening hours 9.00 am to 4.00 pm, Monday to Friday, closed Saturdays, Sundays and bank holidays). If you are calling from abroad, please telephone +44 3000 576 748. Further information can be found on the HMRC website under:

If you have an enquiry call us on: 020 3857 3060