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Where Taxpayers and Advisers Meet

Uk capital gains on gold

Archer2001
Posts:7
Joined:Thu Oct 06, 2016 4:17 am
Uk capital gains on gold

Postby Archer2001 » Thu Oct 27, 2016 10:16 am

Hello!

I'm considering buying and storing physical gold in singapore through a company called bullionvault. Bullionvault is a uk based company. Considering the asset is overseas, would I have to pay captal gains tax. My worry is that I'm using a uk company as an agent for the purchase and sale.

I hope someone can help!

Thank you!

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

Re: Uk capital gains on gold

Postby maths » Thu Oct 27, 2016 1:43 pm

CGT due if you're a UK resident and UK domiciled.

Archer2001
Posts:7
Joined:Thu Oct 06, 2016 4:17 am

Re: Uk capital gains on gold

Postby Archer2001 » Fri Oct 28, 2016 8:09 am

Thank you!

I very much appreciate your messsage. So your saying that I'm exempt as long as I am non-resident? Please Can you point me towards the relevant information on the web? Trying to decipher The HMRC website is a nightmare!

I also called them for clarification buy they were unwilling to help.

Thank you!

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

Re: Uk capital gains on gold

Postby maths » Fri Oct 28, 2016 10:49 am

Taxation of Chargeable Gains Act 1992 section 2(1).

SteLacca
Posts:448
Joined:Fri Aug 07, 2015 2:17 pm

Re: Uk capital gains on gold

Postby SteLacca » Fri Oct 28, 2016 2:32 pm

For information, a company incorporated in the UK will be treated as non-resident for tax purposes where the place of management and control is outside of the UK. If you are the only participator in the company and are non-resident, then the company will be automatically treated as non-resident. However, if you have any UK resident employees/directors you could hit a problem and corporation tax will be chargeable.

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

Re: Uk capital gains on gold

Postby maths » Fri Oct 28, 2016 7:10 pm

For information, a company incorporated in the UK will be treated as non-resident for tax purposes where the place of management and control is outside of the UK.
A company incorporated in the UK is automatically UK resident. This remains so unless management and control is exercised outside the UK and under a DTA this dual residence is resolved in favour of the overseas country from which the mgt and control is exercised. Even then, that is only for DTA purposes.
If you are the only participator in the company and are non-resident, then the company will be automatically treated as non-resident.


This incorrect. Management and control is determined typically where the strategic decisions of the company are taken which is, prima facie, where the board of directors meet and take such decisons.
However, if you have any UK resident employees/directors you could hit a problem and corporation tax will be chargeable.
Not necessarily correct.

Archer2001
Posts:7
Joined:Thu Oct 06, 2016 4:17 am

Re: Uk capital gains on gold

Postby Archer2001 » Sat Oct 29, 2016 8:57 pm

This is really helpful! Thank you!

So I think, as a UK non-resident private buyer, I would be exempt from paying capital gains tax on gold and silver. My only doubt is on the classification of 'carrying on a trade'. Would using Bullionvault as a trading platform to buy the gold mean that i am carrying on a trade? If so I think I would have to pay tax. My feeling is that carrying on a trade means operating a business but how can I be sure? Here's the extract from the tax law :

' a person shall be chargeable to capital gains tax in respect of chargeable gains accruing to him in a year of assessment in which he is not resident and not ordinarily resident in the United Kingdom but is carrying on a trade in the United Kingdom through a branch or agency, and shall be so chargeable on chargeable gains accruing on the disposal—

(a)of assets situated in the United Kingdom and used in or for the purposes of the trade at or before the time when the capital gain accrued, or

(b)of assets situated in the United Kingdom and used or held for the purposes of the branch or agency at or before that time, or assets acquired for use by or for the purposes of the branch or agency.
'

Again, any assistance would be very gratefully recieved.

Thank you!


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