Has your bank asked you to close your UK bank account due to Brexit?

84 posts in this topic

1 hour ago, lunaCH said:

personally I think giving one of a family member is acceptable (though probably still not legal). 

 Not legal but acceptable.

Everybody has its own moral standard.🙁

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8 hours ago, Gambatte said:

 Not legal but acceptable. Everybody has its own moral standard. 

True. I didn't personally make a false statement though, as the address was valid at the time of opening the UK account. I just haven't updated it. ;) 

I think it's pretty obvious that there will be hundreds of thousands of people who have accounts registered using addresses at which they don't reside. It doesn't make it right, but it's not something you can definitively stop. And honestly, I don't think it should be a priority to stop this. There are far more serious goings-on and blatant injustices to deal with.

 

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10 hours ago, Smaug said:

 

And another is not to pay wealth taxes, or taxes on interest, dividends and capital gains.

 

How does one do this? ... asking for a friend.

 

My UK bank account always had my German address and I presumed they shared all relevent info with the German Tax authorities. Actually, I have received paperwork to this effect - telling me that they would be sharing my info.

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14 hours ago, GaryC said:

With respect, Barclaycard is not a bank but a credit card company and part of the Barclays Bank group. 

 

Credit card companies often inform people that because an account has been dormant for a long time they will close it in X days, months or on a specific date unless transactions are made.  Your letter sounds like one of those. 

 

I have a credit card which I keep for emergencies, e.g. loss of main card etc, and occasionally get letter of the sort to which you refer. I usually just make a small purchase using the card to ensure the account remains open. 

 

Good Point. Admittedly, this is a pretty dormant account and so I am not particularly bovvered.


However, I was concerned because they specifically stated it was due to the UK leaving the EU. A bit of googling revealed that there does indeed  appear to be some confusion among banks regarding the future of  non-residents accounts,

 

Oddly, most of the articles discussing the possibility of Brits abroad losing their UK bank accounts are from circa 2 years ago : https://www.theguardian.com/politics/2018/aug/23/britons-in-eu-could-lose-access-to-uk-bank-accounts-under-no-deal-brexit 

 

The articles seem to focus on the no-deal aspect which is a real possibility.

 

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1 hour ago, kthxcia said:

How does one do this? ... asking for a friend.

My UK bank account always had my German address and I presumed they shared all relevent info with the German Tax authorities. Actually, I have received paperwork to this effect - telling me that they would be sharing my info.

If you have given them the address then you have done things legally / above board. 

 

The way to get around wealth tax is to park the money in a country which doesn't communicate the details to the country in which you reside and you don't declare the account in your taxes if you are in a country where you have to do that. Tax avoidance. 

 

If the country is one that exchanges details, then don't give them the address but domicile the account in the country where you don't reside. 

So in your case, you open an account in the UK, using a UK address. There is no link to Germany that way. ;)

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2 minutes ago, kthxcia said:

The articles seem to focus on the no-deal aspect which is a real possibility.

There wasn't a no-deal Brexit though. Brexit has already happened and there was the Withdrawal Agreement. As you said, the articles are old. ;)

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2 minutes ago, lunaCH said:

There wasn't a no-deal Brexit though. Brexit has already happened and there was the Withdrawal Agreement. As you said, the articles are old. ;)

 

I don't think that's true. Have you tried googling 'no-deal Brexit'? I assure you, the articles discussing this possibility are very current.

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27 minutes ago, kthxcia said:

I don't think that's true. Have you tried googling 'no-deal Brexit'? I assure you, the articles discussing this possibility are very current.

The article you linked to was two years old or more. 

The deal that they are now trying to get through concerns the future trade relationship between the UK and the EU. 

The Withdrawal Agreement was signed by both sides before Brexit happened. Again, there was no no-deal Brexit. It was avoided. ;)

 

Whether a UK bank wants non-residents as customers is probably up to the bank. If they don't accept non-residents and you want to bank with them, then give them a UK address. Or if you want to avoid the sometimes exorbitant charges that non-residents pay, then give them a UK address. :)

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I see. Ok. It's very confusing how they insist on still calling it a no-deal Brexit .... couldn't they call it no-deal2 or something?

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1 hour ago, lunaCH said:

If you have given them the address then you have done things legally / above board. 

 

The way to get around wealth tax is to park the money in a country which doesn't communicate the details to the country in which you reside and you don't declare the account in your taxes if you are in a country where you have to do that. Tax avoidance. 

 

If the country is one that exchanges details, then don't give them the address but domicile the account in the country where you don't reside. 

So in your case, you open an account in the UK, using a UK address. There is no link to Germany that way. ;)

Sorry but what you describe is not tax avoidance but evasion - you are deliberately not declaring part of your worldwide income for tax purposes in the country in which you are tax resident.

 

Edit - and in the UK there are severe penalties for those who evade tax using offshore structures and for those who enable them to do so.  The latter is described in  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/871224/CC-FS17a-English.pdf.   

 

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1 hour ago, GaryC said:

Sorry but what you describe is not tax avoidance but evasion - you are deliberately not declaring part of your worldwide income for tax purposes in the country in which you are tax resident.

No need to be sorry, you're right. In some jurisdictions, such practice will be considered tax evasion. I've never denied this. ;) 

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2 hours ago, kthxcia said:

I see. Ok. It's very confusing how they insist on still calling it a no-deal Brexit ... couldn't they call it no-deal2 or something?

 

Kinda off topic at this point, but coming back to 'no deal' brexit issue...

A bill has been passed in the Uk allowing for the UK to backtrack on it's Brexit deal, which: https://www.bbc.com/news/uk-54147365  and so it could be argued, that British expats might have cause for concern over the future of their UK bank accounts.

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7 minutes ago, kthxcia said:

British expats might have cause for concern over their future in general, owing to the way Brexit has been handled.

FTFY. 

Did you come across any recent article that speaks of banking arrangements and whether new rules apply already, since 1.2.20 (post-Brexit), or even after the transition period has ended so from 1.1.21? 

Was there anything in the W.A. that touched on bank accounts and the future arrangements / change of rules for these?

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26 minutes ago, lunaCH said:

FTFY. 

Did you come across any recent article that speaks of banking arrangements and whether new rules apply already, since 1.2.20 (post-Brexit), or even after the transition period has ended so from 1.1.21? 

Was there anything in the W.A. that touched on bank accounts and the future arrangements / change of rules for these?

 

Newp. Nothing. Nada. Nothing apart from the letter from Barclaycard citing Brexit as the reason for closing my account...

 

Also, this is a thread about Brexit and bank account so I wanted to keep my concerns regarding no-deal Brexit specific.

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10 minutes ago, kthxcia said:

 Brexit as the reason

This will be the excuse (or reason as you say), for many negative things or changes occurring over the coming years. :rolleyes:

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Really depends on the bank! HSBC told me that have no problem with me living abroad as long as I don't leave the account dormant.

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45 minutes ago, lunaCH said:

Please don't advise people to use Revolut. Many have had their money frozen for months: 

They may be fine for a while but it's a massive hassle if this happens to you. 

This happened to us and I don't want it to happen to others.

@lunaCH: I have had no problem with it, but thank you for adding this comment. I guess each person has to decide what to do with their UK-based money in the brexit situation, and I do think this that revolut provides an escape route, assuming of course that your money is not frozen!!

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