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European Directive on the Taxation of Savings

About the directive

The Directive came into effect on 1 July 2005 and deals with the taxation of savings income in the form of interest payments generated in one EU member state and paid to an individual in another EU member or affected state as listed on the Information Sheet..

Funds affected

The payments that are covered include distributions where the fund has invested more than 15% in debt and redemptions where the fund has invested more than 40% in debt. The following Aberdeen UK funds are expected to fall in scope:

for distribution payments only are:

  • Aberdeen Multi-Asset Fund

for distribution and redemption payments are:

  • Aberdeen Long Bond Fund
  • Aberdeen Cash Fund
  • Aberdeen Corporate Bond Fund
  • Aberdeen Managed Distribution Fund

Aberdeen’s legal responsibilities

Under existing regulations, Aberdeen Unit Trust Managers Ltd is legally bound to provide the HM Revenue and Customs with details of interest payments made to all clients who are resident in the UK. Under this new directive, this is further extended to include details about the payment of savings income, in the form of interest payments, made to residents in certain other prescribed countries. This information will be exchanged automatically with the tax authorities in the client’s country of permanent residence as noted in the register. A report will be sent to the HM Revenue and Customs annually giving your name, address, Tax Identification Number (if it is held), country of residence and details of the payment made to you, as an interest payment, from the funds listed above.