Barclays issues warning over rule that applies to 'all our of our customers'

Barclays has issued a warning over a tax letter being sent out with a rule that applies to "all our customers." Barclays, which is rivalled by Santander, HSBC UK, NatWest, TSB and more, responded to a confused customer contacted the bank as they had received a letter asking them to confirm some details.

They queried: "Why have I received a letter from you to prove my granddaughter's age, residency, tax status when she's only 7 years old and I'm in charge of her ISA account like all my grandkids?" The frustrated grandparent added: "You opened the account for us years ago, so you have her details."

Barclays said: "We’re obliged under tax regulation by law to record tax residency info for all of our customers, including minors, even if they aren’t required to pay tax. The form provided will still need to be filled out by the trustee/parent using the minors details, in this case your granddaughter's details."

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Barclays said: "As the account is under your name, there will also be part of the form you’d need to fill out with your details in as well." They went on to say the spaces the grandparent would need to complete would be under the 'Capacity section'.

Barclays added: "Once the form has been filled out, you can pop it back into the envelope you’ve shown in your message and the team will update everything." Barclays says: "This requirement results from international agreements designed to help tax authorities address tax evasion.

"This is particularly relevant if someone holds assets in countries where they’re not tax resident and may not be declaring those assets, or income, in their residence territory." The bank went on and adding: "Under these agreements, the Labour Party government will exchange information about these assets and income with the residence territory."