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VAT refunds

Circumstances may arise where changes in interpretation of VAT law may lead to VAT previously charged to clients becoming recoverable from HMRC. In such circumstances Charles Stanley may be able to file “protective claims” for VAT overcharged to those clients who should have qualified for exemption over the last four years which is the maximum period allowed.

If HMRC accept any such claim, we will pass on to you the full amount refunded. Please note that this amount may be lower than VAT originally charged on the services provided. This is because, under Section 80(2A) of VATA 94 we are required to calculate the amount of VAT that Charles Stanley originally recovered relating to these supplies, and to deduct that from the claim.

The VAT Regulations require us to pass on the full amount of the refund received, and we can confirm that we will do this as quickly as possible after a claim is approved.


The globalisation of the financial sector now makes it much easier for individuals and entities to hold money and assets outside of their jurisdiction of tax residence. While the great majority comply with their tax obligations there are some who will use the availability of offshore financial structures to evade tax.

Automatic exchange of financial account information is about improving transparency in the fight against tax evasion and in so doing protecting the integrity of the tax systems of the Participating Jurisdictions. The UK is a party to a number of international agreements designed to provide tax administrations with details of financial accounts and assets owned by individuals and entities that are resident for tax purposes in their jurisdiction, but which are held by financial institutions in the other territory.

For this to work, the UK Government has introduced legislation that imposes obligations on the UK financial sector to review and collect details of accounts held by persons that are tax resident elsewhere and report this to HMRC for onward transmission under the exchange of information articles in the various treaties and conventions to which the UK is party. In return, those jurisdictions supply HMRC with similar information on UK tax resident individuals and entities holding accounts with their financial institutions.

The UK now has legislation in place for automatic exchange of financial account information under four different regimes:

1/ The United States Foreign Account Tax Compliance Act – FATCA
2/ The Crown Dependencies and Gibraltar Regulations – CDOT
3/ The Common Reporting Standard developed by the OECD – CRS
4/ The EU Directive on Administrative Cooperation in Tax Matters – DAC

The UK is also party to a number of non-reciprocal automatic exchange of information agreements under which the UK receives information but is not obliged to report to the other jurisdictions.
Going forward it is expected that, with the exception of the FATCA agreement, all of the UK’s obligations in this area will be under the CRS or the DAC.

Financial Institutions are required under UK law to review and collect details of accounts held by all account holders and to report details about US persons and those who are tax resident outside the UK

To achieve this, we require you to complete a tax residency self-certification form which is available from your usual Charles Stanley contact. The documents on this page will provide further background information which should assist you in completion of this form.

Note that if you are a trust or entity that under CRS is a financial institution (including an investment entity with an account managed by Charles Stanley) you may be responsible for reporting any reportable persons to your local tax authority that are tax resident in a reportable jurisdiction.

RDR status

We offer clients a wide range of different financial services to suit their needs. We provide a comprehensive service - advising on, managing and buying and selling stocks, shares, unit trusts, gilts, corporate bonds and a wide range of other financial instruments.

These services do not extend automatically to advice or management in relation to clients' overall financial planning arrangements, or to any individual aspect of their financial requirements other than stockmarket and stockmarket based investments. Our advisory investment services are therefore classed as 'restricted' since they are designed specifically for investors seeking specialist expertise and advice on investments and investment portfolios. As an independently-owned firm, we are not tied to any products or providers.