European Directive on the taxation of savings and C&G Building Society

[Jackie]

We had a letter from Cheltenham & Gloucester today which says that they are now restricting their savings accounts to UK residents only. This is because of the above directive and which sounds as if they find reporting interest earned on a savings account to the UK Inland Revenue too much trouble! The UK Inland Revenue would then pass on information to the saver's country of residence.

So such accounts will be closed by the 15th of April and all they are offering is a Lloyds TSB Overseas Club Account at a charge of £50 a year but this subscription to be waived for the first year.

OK the Edit facility is back, I was going to add that the letter from C&G implied that other providers might be doing the same thing!

So what do you recommend folks, anyone know of a good UK building society that will let you have an overseas address?..........Jackie and John feeling unloved!

 

 

[Catalpa]

C&G advised me of this likely change about 6+ months ago so it's been long in the planning. For comparison of rates, terms, conditions etc, I used www.moneysupermarket.com. Select offshore and see what's available and what appeals.

http://www.moneysupermarket.com/Savings/

[Ron Avery]

C&G cancelling non UK accounts may also be something to with the FSA wanting proof that non UK savers are not money launderers.

I had a second waffly letter from Abbey (the first was ultra waffly so I binned it)  saying that   " You have opened an account in the last two years without proper proof of identity" ( this is not true as the account is 16 years old), they wanted copies of passport, bank statements, utility bills and a statement signed  by a banker, notary etc sent to them through the post.  I thought, hello identity theft here we come, so I phoned them up.  I told them about the 16 years old savings account, they said it must be a mortgage account then, possibly I said, I did have an extension to buy the French house but paid it off two years when the UK house sold. Ah that's the one the Abbey said

 So I asked them if I was dreaming, they wanted proof of who I was for an account that was closed and they wanted me to go to a Notary and probably pay to have my details confirmed,  Yes,  they said

 So I asked them to check the balance on the 16 year old account and it had............  £1 .28. 

Have Abbey been out in the Spanish sun too much?,

[Graham & Brenda]

Natiowide will let you have an account with an address in France - but they won't pay the interest gross!

 

Graham

[Jackie]

Many thanks for the responses. I have looked at the Money Supermarket with interest and am also looking at Nationwide. I assume that the tax paid can be claimed back from the I.R. as we used to do with the C&G account. I think that you would have to do this as the French I.R. would tax the gross interest anyway, they did last year with us. Was the account you had in mind Graham called "e-savings" linked to a Flexi-account, an instant access account via the internet because their blurb now says UK residents only!...................................John  

[Graham & Brenda]

Yes I do have a Flex account, an e-savings account and their credit card but I had them all before we left the UK.

Graham

[Jackie]

Thanks for that Graham.

So if you have to go off-shore folks, it looks as though you might if you live in France and if not now then soon, what account do you recommend having telephone or internet and instant access with reasonable interest? The list on Money Supermarket is impressive but personal experience is worth a lot and someone out there must have had experience of this! I am prepared to keep a reasonable float of a few k in the account. Charges for having the account or for transfers to and from a UK bank are not really acceptable  

.................................John not Jackie