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

Holding Investments Offshore

janebates
Posts: 8
Joined: Tue Jan 30, 2018 5:22 pm

Holding Investments Offshore

Postby janebates » Mon Nov 19, 2018 11:53 am

Hi,
I was born in Spain and have lived there all my life. I went to school in the UK (I'm now 68) and have had a investment portfolio with a UK stock broker friend for over 25 years. The portfolio is worth about £800,000 and is invested in a range of blue chip shares such as Shell, HSBC, Microsoft and JP Morgan.
I am concerned about Jeremy Corbyn getting into power, so am thinking about moving this portfolio to an offshore custodian (my stockbroker says the portfolio can be held on their Jersey platform - it is currently on their UK platform)
Would this cause a tax problem for me?
I pay all my taxes in Spain, and have a Spanish accountant. I have never submitted a UK tax return, and don't think I have any UK income tax, capital gains tax or Inheritance Tax liabilities.
The question is basically - am I correct in thinking I don't have a tax problem, and would moving everything to Jersey suddenly cause a UK tax problem?

maths
Posts: 7450
Joined: Wed Aug 06, 2008 3:25 pm

Re: Holding Investments Offshore

Postby maths » Mon Nov 19, 2018 5:14 pm

No UK tax arises as there is no change in beneficial ownership of the shares; all that is happening is that the legal title holders/nominees are changing from UK to Jersey.

Just for argument purposes, depending upon what precise controls Corbyn would introduce it may be that shares of companies incorporated within the UK even if held via a Jersey broker/nominee would not protect them "from being seized or subject to some form of exchange control".

AGoodman
Posts: 609
Joined: Fri May 16, 2014 3:47 pm

Re: Holding Investments Offshore

Postby AGoodman » Mon Nov 19, 2018 5:20 pm

No, it should not make any difference as the custodians are ignored for tax purposes.

You could still have a UK IHT liability as this is tied to the location of the underlying companies in which you invest. Shell, Esso would be exposed, JPM and Microsoft are outside the UK.

Also bear in mind that to obtain the investments your heirs would likely need a Jersey grant of probate and there is a probate fee of about 0.75% (the UK is sadly looking at bringing in something similar).

janebates
Posts: 8
Joined: Tue Jan 30, 2018 5:22 pm

Re: Holding Investments Offshore

Postby janebates » Mon Nov 19, 2018 5:52 pm

Many thanks both of you for your guidance - food for thought and I was certainly unaware that there would be a Jersey probate fee to contend with if I were to die.
I realise IHT may be an issue but I plan to sell my UK stocks.
But it sounds like I am correct in not needing to worry about UK income tax or capital gains tax?

thanks

AGoodman
Posts: 609
Joined: Fri May 16, 2014 3:47 pm

Re: Holding Investments Offshore

Postby AGoodman » Tue Nov 20, 2018 3:33 pm

No, so far as IT and CGT are concerned, nothing has changed.


Return to “Capital Gains Tax, CGT”