Hi thereI am German and a permanent U.K. resident since 8 years and have USA-shares with a broker in the United States.How do I need to calculate and present this to the Inland Revenue for the tax year 2008-2009.The amount I have invested is small $10500 and I made a loss up to now.I have signed a W-8BEN formular with the US broker.I would be very gratful for some help.Sincerly Andreas Warncke Wittekind
State/Country relating to question: United Kingdom
Looking on the internet.
What I found was that I have to calcutate each time I buy or sell a share from US dollar to Pound Sterling and add up the gains or losses.
The disposal of shares falls under the capital gains tax regime - the theory of converting from US $ to £ on the sale and purchase of each share is correct.
You need to determine if the shares are all in one company or several and you add up the total cost per company shareholding. If you have not sold all the shares in a company you then apportion the cost against the proceeds received. However, depending on the sums involved I would recommend that you seek professional advice for the calculation of the loss as the capital gains tax rules can be quire complicated.
Anyway, the resulting capital loss will be disclosed on a 2009 UK tax return on the capital gains tax pages.
I hope that helps!
Hi JulieThank you for your answer so far.The shares are from differnet companies but I started back in mArch 2009 so there are not so many shares to take care off as the concerned tax year only goes to 5th ofApril 2009.When I calculate the Pound Sterling share price from where do I take the exchange rate, because banks take differnet prices?I will fall below the free Capital Gains tax allowance of £9600.Maybe you have a somewhere where I can read on?I will look for professional accountant.Thank you very much for you help again.RegardsAndreas
I would use the exchange rate and if you visit www.hmrc.gov.uk you should be able to find more information on capital gains tax.