Bank and building society interest - Overseas

Can UK bank and building society interest be paid to someone who lives overseas without the deduction of tax?

Savers who are ‘not ordinarily resident’ (PDF 160K) in the UK can complete form R105 to receive their interest without tax taken off. But not all banks and building societies accept form R105. You will need to check with your own bank or building society.

What address do I use on form R105?

The address given on form R105 must be your principal residential address. This will be the address where you usually live. A UK address can be given only in very limited circumstances - for example if you are a student from abroad living here temporarily and are still treated as being non-resident.

A PO Box address can be given as a principal residential address only if that is an acceptable residential address for the country you live in, and would allow you to be traced. If you want to use the PO Box number your post is sent to but you live elsewhere you cannot use it - you must use your house address. The bank or building society will ask for confirmation that this is the case. A PO Box address in the UK cannot be given.

Your bank or building society will make regular checks to make sure that your circumstances haven’t changed, and that you are still ‘not ordinarily resident’ in the UK. If they find your circumstances have changed, or they cannot contact you they will cancel your form R105 and pay interest after tax has been taken off.

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Who can sign form R105?

If the beneficial owner of the interest is an adult form R105 can be signed by;

  • The adult.
  • The person to whom the interest is paid, for example a person holding a power of attorney or third party mandate, or a bare trustee.

If it is being signed by the adult they should tick the box that says ‘I am beneficially entitled to the interest, it belongs to me’.

If it is being signed by the person to whom the interest is paid, they should tick the box that says ‘I am not beneficially entitled to the interest, but I receive it for someone else’.

See an example of who can sign form R105 for an adult.

If the beneficial owner of the interest is a child form R105 can be signed by;

  • The child if they are 12 or over and they understand what they are signing.
  • The parent or guardian.
  • The person to whom the interest is paid, for example a trustee of a bare trust.

If it is being signed by the child they should tick the box that says ‘I am beneficially entitled to the interest, it belongs to me’.

If it is being signed by the parent, guardian or the person to whom the interest is paid, they should tick the box that says ‘I am not beneficially entitled to the interest, but I receive it for someone else’.

See an example of who can sign form R105 for a child.

Table to show who can sign form R105

Who can sign

Account belongs to child

Account belongs to Adult

saver (if over 12)

Yes

Yes

under 12

No

Not Applicable

parent

Yes

Not Applicable

guardian

Yes

Not Applicable

POA

Yes

Yes

trustee if interest paid to them

Yes

Yes

trustee if interest isn't paid to them

No

No

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What about joint accounts?

A form R105 can only be signed if all parties to the joint account are ‘not ordinarily resident’ in the UK. Any investor in a joint account may sign the form R105 on behalf of all the other investors as long as they are all not ordinarily resident and all the names and addresses are given.

If a joint account is held where one party is not ordinarily resident but the other party is resident in the UK, form R105 cannot be signed.

If one party to a joint account leaves the account, a new declaration is not required unless that person was the only signatory of the NOR declaration.

See an example of joint account holders.

Deceased savers

If a form R105 is in place before the saver dies, it does not need to be cancelled on their death.

See an example of saver who dies after completing form R105.

If one party to a joint account dies, a new declaration is not required unless that person was the only signatory of the NOR declaration.

See an example of a joint account where one of the savers dies after completing form R105.

A form cannot be signed after the saver has died. If the deceased saver was not ordinarily resident in the UK immediately prior to his or her death, the personal representative can complete form R105(PR) (PDF 45K). But not all banks and building societies accept form R105(PR). You will need to check with the deceased saver’s bank or building society.

See an example of form R105(PR) being completed.

Can form R105 be backdated?

No.

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