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Where Taxpayers and Advisers Meet

Capital Gains non resident US citizen

Joined:Tue Oct 27, 2009 7:24 pm
Capital Gains non resident US citizen

Postby imstrabo » Tue Oct 27, 2009 7:35 pm


I am a US citizen living in the US. I am thinking about trying to trade stocks, bonds and commodities on London based exchanges. I am trying figure out if I will have to pay capital gains taxes on any gains and if I need to make any filings with the tax authorities in the UK.


Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Capital Gains non resident US citizen

Postby pawncob » Wed Oct 28, 2009 12:11 pm

Apart from Stamp Duty I don't think this arrangement will involve any UK taxation.
With a pinch of salt take what I say, but don't exceed your RDA

Joined:Tue Nov 11, 2008 10:44 pm

Re: Capital Gains non resident US citizen

Postby guya » Wed Oct 28, 2009 10:48 pm

There will be us on foreign currency gains and capital gains and may be FBAR filing.

Watch for PFICs.

Joined:Wed Aug 06, 2008 2:19 pm

Re: Capital Gains non resident US citizen

Postby Taxbar » Tue Nov 17, 2009 12:54 pm

Actually there is another UK tax exposure.

If you pass away holding UK stocks and shares you could have a UK Inheritance tax exposure, unless protected by the US/UK Estate tax treaty Article 5 .This should work for most UK stocks and shares.

However, there will still be need for a UK probate using your US will and probate in order for the shares to be transferred to your estate.

You should consider using an nominee arrangement, or US quoted ADRs of UK shares to avoid this.

Daniel Feingold
Senior Partner

Michael I. Atlas, CA
Joined:Wed Aug 06, 2008 3:37 pm

Re: Capital Gains non resident US citizen

Postby Michael I. Atlas, CA » Tue Nov 17, 2009 3:58 pm


I think that holding/trading the shares via a US LLC would be another way to avoid that problem, since it would avoid holding UK situs property, but still allow disregarded entity treatment for him in US.
Michael I. Atlas, CA,CPA,TEP
Practice Restricted To Tax
Toronto, Canada

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