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Where Taxpayers and Advisers Meet

Capital Gains on US stock sales

coastal
Posts:1
Joined:Thu Mar 11, 2021 4:44 pm
Capital Gains on US stock sales

Postby coastal » Thu Mar 11, 2021 5:02 pm

Hello

I am a long term UK resident and a US citizen. I have capital gains from the sale of US stocks to report on both my returns - IRS 2020 and HMRC 2020/21 - which exceed the exemption amounts in each case (previously I have been within the exemption so hasn't been an issue).

I would just like to confirm that as a UK resident, the tax should be paid to HMRC, with a foreign tax credit claimed from the IRS so I don't get taxed twice. I already filed my 2020 US return and made a payment, but I think I can just apply for the tax credit on my 2021 return, using whatever date I make a tax payment to HMRC? Although I will eventually get a refund I believe I also need to file estimated taxes to avoid any penalties as I have additional ST capital gains realised already in the first quarter of 2021 which will be taxable.

Can someone confirm that is correct?
Thank you.

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