Can Halifax Ask You To Confirm Your Residency Status For Tax Purposes?

If you are wondering whether or not Halifax can ask you to confirm your residency status, you will find the answer to your question in the following blog post. In addition to this, we will also explore the reason(s) why Halifax would inquire about the details of your residency, the response you should take and if you can expect any other information to be gathered by Halifax for tax purposes.

Can Halifax Ask You To Confirm Your Residency Status For Tax Purposes?

Yes, Halifax can ask you to confirm your residency status for tax purposes. This can happen if any of the following situations apply to you:

  • you have opened a new account
  • you have amended your personal details
  • review of your accounts indicates that the bank does not have recent information on your tax residency status or whether you are a US citizen

The requirement for asking bank account holders about their residency status falls under the Common Reporting Standard (CRS); which is a global standard for the automatic exchange of Financial Account information between governments.

This means that the information being requested by Halifax is not merely an update of your records held with them, but in fact, is information being inquired on the directive of HMRC; with results to be shared with HMRC as well as the relevant government of a participating country.

This collection of information is based on the aim of CRS to reduce tax evasion around the world and protect the integrity of systems by improving transparency. 

For this, it needs all financial institutions including companies within Lloyds Banking Group (this includes Halifax), who operate in Participating Countries, to collect certain customer information and report it to local tax authorities.

If you’ve been contacted by Halifax asking you to complete a Tax Residency Self-Certification form, and document proof of tax residency, you should respond to them and fill in the form according to the due date mentioned. 

It is important to note that CRS applies to certain accounts with investment features such as the following: 

  • Savings 
  • Current Accounts 
  • Cash Value Life Insurance and other investments

However, Halifax may contact any of its customers inquiring about details of their tax residency status.

Therefore, Halifax (and other financial institutions) not only reserve the right to gather information regarding the residency status of their account holders for tax purposes but are required to share it with HMRC.

Why Has Halifax Asked To Confirm Residency Status For Tax Purposes?

Halifax has asked you to confirm your residency status as part of the Common Reporting Standard that applies to participating countries; including the UK.

Across the globe, governments have established standards that facilitate the sharing of information between tax authorities. This framework, known as the Automatic Exchange of Information (AEoI), has become essential in the battle against tax evasion. 

One such law under this framework is the Common Reporting Standard (CRS), which is regarded as a crucial tool in the worldwide effort to combat tax evasion.

The CRS mandates that financial institutions, like Halifax, must identify customers who are tax residents in one country but hold Financial Accounts in another country, for the purpose of inter-country reporting. 

If you are a tax resident of the United Kingdom and maintain financial accounts only within its boundaries, then you may be exempted from CRS reporting.UK, then you will not be reported by any UK companies but may be asked to confirm your tax residency.

Is Halifax Gathering Any Other Information As Well For Tax Purposes?

Yes, in addition to your residency status, there is additional information that Halifax (and other financial institutions) will be gathering or confirming with you for tax purposes. This includes the following:

  • name and address
  • date and place of birth
  • name and identifying number of the account provider
  • your account balance (this included interest and dividends), at the end of the calendar year

Other information that they gather depends on whether the account that you hold with Halifax is in your name or in the name of another entity.

If your Halifax bank account is in your name, the following information will also be gathered (and shared with the authorities):

  • your National Insurance number, if you are a UK tax resident
  • your TIN (tax identification number), if you are a tax resident of another country

If your Halifax account is in the name of a company, branch of a foreign company, partnership or trust, the following information will be collected by Halifax:

  • tax residence status
  • tax identification number
  • type of business

That said if you are concerned about the authenticity of the letter (or any other piece of communication) received in the name of Halifax and you suspect it to be a scam, it is advisable to contact Halifax and confirm whether the communication has originated from them.


The above discussion helps to conclude that Halifax can confirm their residency from its account holders for tax purposes. This is done as part of a global alliance across governments of participating countries to reduce tax evasion. However, being inquired about your residency status should not be a cause of concern; as it could simply indicate that Halifax is updating its records to make sure that your information held with them is accurate for tax purposes. 


Common Reporting Standard (CRS) | Help Centre

Unexpected request to confirm tax residency – Halifax — MoneySavingExpert Forum

Bank letter asking me if I am a UK resident for tax purposes | This is Money

Automatic Exchange of Information if you have an account – GOV.UK