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Where Taxpayers and Advisers Meet

CGT on Non-Property Assets for returning EXPATS

ab0035
Posts:2
Joined:Wed Aug 06, 2008 4:05 pm
CGT on Non-Property Assets for returning EXPATS

Postby ab0035 » Tue Feb 14, 2017 11:55 am

I've searched extensively through various avenues for information regarding the treatment of Capital Gains on Assets for returning non-Residents and been unsuccessful finding any material that can answer my question. Assume my scenario is such that I have a portfolio of Shares and funds in a simple brokerage account that have been accumulated while I have been Non resident (UK-Domiciled) for a consecutive period of 9 full tax years in a tax regime that has a 0% Capital Gains tax rate. Assume in this current tax year I will qualify for Split year treatment.

Is the rule as simple as:

Any sales (for gains or losses) are recognised fully under UK CGT for tax assessment purposes from the day I become resident and ordinarily resident again, and any Sales I make before the day I become resident again are irrelevant for any calculations as far as UK HMRC are concerned, as they occurred while I was still Non resident.

If that is correct, logic would follow that I should sell anything showing a gain prior to my return and sell anything showing a loss post my return, buying back the shares/funds I wish to own a few days after I return, in doing so keeping my portfolio in tact (with only a few days break) while avoiding any Capital Gains on long term holdings, and crystallising losses, which can be used in the UK against any future gains subject to the rules etc.

Thanks

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: CGT on Non-Property Assets for returning EXPATS

Postby AGoodman » Tue Feb 14, 2017 12:58 pm

Yes, all correct.

Just bear in mind the bed and breakfasting rules: if you sell and rebuy the same share or security within 30 days, the shares are identified with each other (matched) and you are treated as never having sold in the first place.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: CGT on Non-Property Assets for returning EXPATS

Postby maths » Tue Feb 14, 2017 3:33 pm

Agree with AGoodman's comments.

Other things being equal it is preferable to sell in a tax year whilst you are non-UK resident. If you do sell in a so-called split year you need to be very clear that the conditions for such treatment are satisfied; not all returning ex-pats automatically qualify for split year treatment.


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