Important Tax Co-operation and Disclosure

The following information is important. You should review the information and satisfy yourself whether the information applies to you. If in doubt we strongly recommend that you seek specialist advice from your tax adviser.

In December 2012 the Isle of Man announced that it would be entering into closer tax
co-operation with the United Kingdom (UK) via an automatic exchange of information agreement based upon the same principles as those recently negotiated between the UK and the United States of America (US).

This agreement will result in Santander UK plc Isle of Man branch providing a broader range of information to HMRC in respect of UK resident taxpayers than that already provided under the European Union Savings Tax Directive. Details of the new agreement between the Isle of Man and the UK can be found at:

www.hmrc.gov.uk/fatca/uk-crown-dependencies.pdf

On the 19 February 2013, in support of this announcement, the Isle of Man Government entered into a ‘Memorandum of Understanding’ (MOU) with Her Majesty’s Revenue and Customs of the United Kingdom of Great Britain and Northern Ireland (“HMRC”) relating to co-operation in tax matters. Under this MOU, HMRC has agreed to make available from 6 April 2013 until 30 September 2016 a disclosure facility to assist people in complying with their tax obligations to the United Kingdom. This can be found at:

www.hmrc.gov.uk/offshoredisclosure/isleofman-memorandum.pdf

We are obliged under the terms of the agreement to contact customers to whom the MOU may be relevant in order to inform such customers of the facility. Santander UK plc Isle of Man branch has taken the decision to inform all our customers of this MOU.

The MOU facility may be relevant to any of our customers who have been, or who currently are, tax resident in the UK for any period between 6th April 1999 and 31 Dec 2013 and allows for the settlement of any outstanding tax liabilities with HMRC. Written guidance has been published by HMRC and can be found, along with the full details of the agreement at

www.hmrc.gov.uk/offshoredisclosure/isleofman.htm

The Isle of Man has also confirmed that it will be entering into closer tax co-operation with the US via an automatic exchange of information agreement known as Foreign Account Tax Compliance Act (FATCA).

The FATCA agreement will result in Santander UK plc Isle of Man branch providing a broad range of information to the US Internal Revenue Service (IRS) in respect of customers with specific US links, detailed in Section B1 of the agreement detailed below. A copy of the agreement between the Isle of Man and the US will be largely based upon that already entered into between the US and the UK, details of which can be found at:

http://webarchive.nationalarchives.gov.uk/20120913103048/http:/www.hm-treasury.gov.uk/d/facta_agreement_tax_compliance_140912.pdf