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Hi there If I moved to the UK I could claim non dom status. If I managed my US-based brok

 
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Hi there
If I moved to the UK I could claim non dom status. If I managed my US-based brokerage account (stocks only) actively from the UK without remitting any proceeds into the UK, would potential capital gains be taxable in the UK?
Thank you.

 

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System of Law: England-and-Wales

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Nothing, just evaluating a potential move to London. Was resident non dom 5 years in the UK until March 2005.

Submitted: 358 days and 6 hours ago.
Category: UK Tax
Value: fr. 48
Status: CLOSED

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Expert:  TonyTax replied358 days and 6 hours ago.

Hi.

Take a look at sections 5, 6 and and 7 of HMRC6.

If you meet all the criteria in paragraph 5.1.1 of HMRC6 you will be exempt from UK tax on your foreign income and gains whether you bring it into the UK or not.

If you have unremitted income or gains in a tax year of less than £2,000 then you can use the remittance basis without having to make a claim to do so. See paragraph 5.5.1 of HMRC6.

If you have unremitted income or gains in a tax year of £2,000 or more then you will have to make a claim for the remittance basis to apply and you may lose your right to the personal allowance and the annual Capital Gains Tax exemption. See section 6 of HMRC6.

If you have been resident in the UK for seven of the previous nine tax years you will also have to pay the Remittance Basis charge of £30,000 per tax year that you claim the remittance basis. See paragraph 5.5.2 of HMRC6. See paragraph 5.7 for information on the RBC and the criteria under which you would be liable for it.

Let me know if you have any further queries.

Expert TypeTax Consultant
Category: UK Tax
Pos. Feedback: 99.0 %
Accepts: 6521
Answered: 6/25/2012

Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.

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Customer replied358 days and 6 hours ago.

Hello,


Thanks a lot but all of that is generic.


My specific question is about active management of my US account, trading every day, say buying and selling 100 times per month. Does a tax liability arise in the UK for the non dom person trading in that manner if profits are generated on the US accounts?


I hope that is clearer.


Best regards,



Joël


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Expert:  TonyTax replied358 days and 5 hours ago.

Thanks for the further clarification.

I'm going to opt out as I cannot be sure of the answer for your specific circumstances. The UK tax authorities appear not to have a definitive policy of the type of tax (Income Tax or CGT) that UK domiciled day traders should be paying which the tax authorities in the US do and it seems to be a take your pick choice for traders. Add to that your non-dom status and it gets even more confused.

You might find some useful information here. I have to say that I have no business links with this site but I know people who have found it informative.TonyTax41085.6931351042

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Expert:  Lindie-mod replied357 days and 21 hours ago.

Hi, I’m a moderator for this topic and I wonder whether you’re still waiting for an answer. If you are, please let me know and I will do my best to find a Professional to assist you right away. If not, feel free to let me know and I will cancel this question for you. Thank you!

 
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