European Union Savings Directive
The European Union Savings Directive (EUSD) is an agreement between the Member States of the European Union (EU) to share information about customers who earn savings income in one EU Member State but live in another. It aims to ensure that individuals pay the correct amount of tax on cross-border income from savings and help reduce tax evasion. Some non-EU countries have voluntarily put into place the same measures – these include Jersey, Guernsey and the Isle of Man.
The directive came into affect on 1st July 2005 and has been amended in 2008 and 2011.
- Who is affected by the directive?
- Which countries are covered by the directive?
- What is ‘savings income’?
- How will my information be shared and do I need to provide any additional details myself?
- What is a Tax Identification Number (TIN)?
- How does this fit with customer confidentiality and data protection legislation?
- Which of my Co-operative Bank accounts are affected?
- Where can I find more information?
Q. Who is affected by the directive? A. The directive will generally apply if you live in an EUSD affected country and benefit from savings income paid in another country covered by the EUSD.
You could be affected if you:
- Are an EU resident receiving savings income outside your resident country
- Hold a passport/identity card issued by an EU Member State
- Opened your account(s) after 1st January 2004
- Receive credit interest payments into an account you hold with any financial institution, not just the Co-operative Bank
Q. Which countries are covered by the directive?
A. If you currently live in or hold a passport/identity card issued by one of the countries listed in the table below, then you may fall under the directive.
| Andorra | Germany | Montserrat |
| Anguilla | Greece | Netherlands |
| Aruba | Guernsey | Netherland Antilles |
| Austria | Hungary | Poland |
| Belgium | Ireland | Portugal |
| British Virgin Islands | Isle of Man | Romania |
| Bulgaria | Italy | San Marino |
| Cayman Islands | Jersey | Switzerland |
| Cyprus | Latvia | Slovakia |
| Czech Republic | Lichtenstein | Slovenia |
| Denmark | Lithuania | Spain |
| Estonia | Luxembourg | Sweden |
| Finland | Malta | Turks and Caicos islands |
| France | Monaco | United Kingdom |
Q. What is ‘savings income’?
A. Savings income as defined by the directive means:
- Interest earned on bank deposits, such as savings accounts
- Interest from certain bonds and proceeds on their sale or redemption
- Income from certain types of investment funds
Q. How will my information be shared and do I need to provide any additional details myself?
A. If you hold an account with us and are resident in one of the countries above, we send our local tax authority information about your identity and residence, the amount of savings income earned and the period it relates to. This information is then forwarded to the tax authority of the country where you are a resident and may be compared by them with your tax records. If you have recently moved overseas and the information we hold indicates that you fall within the directive, we may contact you to provide us with additional information. This may include your town and country of birth or your Tax Identification number.
Q. What is a Tax Identification Number (TIN)?
A. A Tax Identification Number is a unique number issued to you by your country of residence tax authority. In the UK your TIN will also be your National Insurance Number. If you are not able to provide this, we can accept your date of birth, and town and country of birth as an alternative.
Q. How does this fit with customer confidentiality and data protection legislation?
A. All the jurisdictions have comprehensive data protection legislation and well-established common-law principles on customer confidentiality. As laid out in our Terms and Conditions we will only divulge information regarding your account where required to do so by law or with your specific authority.
Q. Which of my Co-operative Bank accounts are affected?
A. Any accounts that pay credit interest will be affected – for example savings accounts and fixed term deposits. Under current guidance, structured deposit accounts should not be affected unless they have a fixed deposit element.
Q. Where can I find more information?
A. More information about the European Union Savings Directive can be found at the HM Revenue and Customs website www.hmrc.gov/esd-guidance
Should you have any further questions please contact:
Personal Tax Services
The Co-operative Bank
PO Box 200
Skelmersdale
WN8 6YR
Tel: 08457 212 212 or +44 1695 621 621 (from overseas)
