This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

No expatriation tax on company shares when leaving the UK?

appdev
Posts:2
Joined:Fri May 18, 2018 8:12 pm
No expatriation tax on company shares when leaving the UK?

Postby appdev » Fri May 18, 2018 8:20 pm

Is it correct that the UK does not levy an expatriation tax on one's company shares when moving to another country, specifically, the United States?

The reason I'm asking is that I'm currently based in Germany, seriously considering moving to the UK this summer, but for business reasons I might move on to the U.S. after a few years. I plan to set up a U.S. (Delaware) corporation while in the UK, but I want to ascertain that I won't face a tax on my shares in that U.S. company when leaving.

Some countries impose an expatriation tax. Germany and Austria are examples: they treat people (whether citizens or resident foreigners) who leave such a country as if they sold all of their assets, so if a company is deemed to have a certain value, a capital gains type of tax applies as per the date on which one is considered to leave the country. Other countries, such as Switzerland, don't have such a tax. I haven't found any UK statute to that effect, but it's always easier to prove that something exists than that it doesn't.

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: No expatriation tax on company shares when leaving the UK?

Postby AmanSood » Fri May 18, 2018 9:58 pm

UK does not have any expatriation tax. However, there are temporary non-residence rules which would look to tax you if you returned to the UK within a 5yr period and would be worth considering.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

DavidTreitel
Posts:271
Joined:Thu Aug 16, 2012 4:31 pm

Re: No expatriation tax on company shares when leaving the UK?

Postby DavidTreitel » Mon May 21, 2018 9:19 am

If (as seems likely) the Delaware corp is UK resident you may want some advice on corporate tax residence issues on exporting the residence of the entity.

appdev
Posts:2
Joined:Fri May 18, 2018 8:12 pm

Re: No expatriation tax on company shares when leaving the UK?

Postby appdev » Tue May 22, 2018 8:26 am

If (as seems likely) the Delaware corp is UK resident you may want some advice on corporate tax residence issues on exporting the residence of the entity.
Thank you, David. You are right. I've researched the residency rules, and as a result of that company being deemed a UK tax resident (it would indeed be controlled and managed from the UK), I would apparently face the "exit charge" as explained on https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg42370


Return to “International Tax”