Expatriates Moving to countries which are not prescribed territories for expatriates

Expatriates can move to countries which are not prescribed territories

According to the savings directive, you do not need to make a report if a UK passport holder moves permanently to a country which is not a prescribed territory, although the payment may be reportable under S17 or S18.

However, if an individual falling under the general rules and living in the UK (or in another Member State) and who has a passport or ID card issued by a Member State other than the UK moves to a country not covered by the scheme and does not produce a certificate of residence for tax purposes from that country's authorities, a report will be required. You will need to update your records to include all the necessary information.

This is because the country of residence for reporting purposes will be the Member State which issued the individual's passport or identity card.

For example, a paying agent makes a savings income payment to a Spanish passport holder living in the UK with whom he has a contractual relationship entered into on or after 1 January 2004. The individual moves to Iceland, but does not obtain a certificate of tax residence from the Icelandic authorities.

The country of residence for reporting purposes is now Spain. Therefore the paying agent will need to obtain and verify the individual's name and address and either the individual's TIN or date and place of birth.

When an individual moves during the year, there may be more than one country of residence and address for the same reporting period.

As long as you report consistently, you may report either the address and country of residence at the time the savings income payment is made, or the address and country of residence at the end of the reporting year (5 April).

 

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