Bristol based accountants and business advisors
Barnes Hunter are warning both businesses
and individuals to be aware of the new European
Savings Directive.
The introduction of the new legislation,
which came into effect on 1st July 2005, will
tighten the net around all citizens of the
EU who have investments held discretely offshore.
Chris Barnes, partner at Barnes Hunter explains:
"It is important to remember that the
new directive is only relevant to residents
in EU member states.
"As a result any interest that is likely
to be received after that date will be withheld,
although you can opt to continue receiving
gross interest in exchange for your interest
and personal details being passed to the local
tax authority."
The directive covers bank accounts, interest
bearing investments including investment funds
and money market instruments or other types
of government or corporate debt.
However, investments that return a dividend
on capital gains, notably shares and appropriately
selected funds, are currently exempt.
As Chris concludes: "It is important
to seek advice immediately so that the implications
of the new legislation can be efficiently
dealt with and overcome without hassle."
For more information contact Barnes Hunter
on 0117 930 0061.
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