IEIM402015 - Reportable Information: Reportable Account Holders: Residence
Source: gov.uk (2025-11-25)


Reportable Information: Reportable Account Holders: Residence

Individuals

In most circumstances, an individual will be tax resident in the country (or other jurisdiction) where they live and work. If an individual files a tax return or pays tax in a country, including direct payment of employment taxes, then they are likely to be a tax resident there.

However, in special cases where an individual has ties to more than one jurisdiction that individual may be ‘dual resident’, a tax resident of more than one country or jurisdiction. For example, the USA, always treats their citizens as tax resident regardless of where they are living. This means that a US citizen is always a US tax resident, even if they are living and working in the UK and also UK tax resident. Where an individual is tax resident in more than one Reportable Jurisdiction then any accounts will be Reportable Accounts for each jurisdiction where they are tax resident.

From 1 January 2026, individual account holders self-certifying theirjurisdictions of tax residencemay not rely on tiebreaker rules contained in tax conventions to determine tax residence but must declare all jurisdictions of tax residence.

If an individual is not certain where they are tax resident then they should refer to HMRC guidance or ask their tax adviser.

Entities

In most circumstances, an entity will be tax resident where it is incorporated and is managed and controlled (although this will depend on the domestic legislation of that jurisdiction).

If the entity is not managed and controlled in the same place that it is incorporated then the entity may be ‘dual resident’, a tax resident of more than one country or jurisdiction.

From 1 January 2026, entity account holders self-certifying their jurisdictions of tax residence may not rely on tiebreaker rules contained in tax conventions to determine tax residence but must declare all jurisdictions of tax residence.

A Reportable Entity also includes entities that are typically tax transparent (partnerships, trusts, etc). For reporting purposes, an entity will be held to be ‘tax resident’ in the jurisdiction in which its place of effective management is situated, e.g. a partnership managed and controlled in the UK will be ‘tax resident’ in the UK even though the taxable persons are the partners rather than the partnership itself.

If an entity is not certain where they are tax resident then they should refer to HMRC guidance or ask their tax adviser.

Financial Institutions are required to be satisfied that a self-certification is reasonable but are not expected to undertake independent legal analysis to confirm whether a tie breaker clause applies.

For accounts opened prior to 1 January 2026, Financial Institutions are not required to revisit due diligence to determine if a tie breaker is being relied on, unless there is a later change in circumstances.

Example 1

An Individual Account Holder opened a Depository Account with a Financial Institution in 2013 and opens an additional Depository Account with the same Financial Institution in 2026. The additional account opening does not require the provision of new, additional or amended customer information by the Account Holder. Both accounts are treated as a single Financial Account for purposes of applying standards of knowledge, and the Financial Institution is permitted to rely upon the AML/KYC Procedures previously performed. The additional account meets the conditions set out in paragraph 82 of the Commentary to Section VIII.C(9) of the CRS to be treated as a Preexisting Account. Where the Financial Institution treats such additional account as a Preexisting Account it is not required to perform additional CRS due diligence upon opening the additional account.

Example 2

The facts are the same as Example 1, except that the first Depository Account was opened in 2018. A valid self-certification was collected upon account opening in 2018 and there has been no intervening change in circumstances. The additional account does not meet condition (b)(i) set out in paragraph 82 of the Commentary to Section VIII.C(9) of the CRS, and therefore is a New Account. No new, additional or amended customer information was collected as part of the additional account opening, and the Financial Institution has no reason to know that the 2018 self-certification is unreliable. The Financial Institution may rely on the existing self-certification to open the additional account in 2026.

Example 3

The facts are the same as Example 2, except that the additional account is a Custodial Account which requires the provision of new customer information by the Account Holder. The additional account does not meet conditions (b)(i) and (iv) set out in paragraph 82 of the Commentary to Section VIII.C(9) of the CRS and therefore is a New Account. Both the Depository and the Custodial Account are treated as a single account for the purposes of applying standards of knowledge applicable to self-certifications. The Financial Institution may rely on the existing self-certification to open the additional account in 2026.