Uk-situs listed company / Non-dom

[roger88]

hello,

I m sure it’s a very basic question but I m unable to find clear answers online , so thank in advance for your help !

a share of a UK listed company have been bought by a Non-Dom person with an offshore bank account and an offshore broker, ( the UK company was listed on the New-York Stock Exchange, so didn’t realise it was Uk-situs at first.. )
So Is the money considered remitted in the UK ?

If yes how do we declare this transaction?

And how HMRC can be aware of it if the share is kept offshore and sold offshore ?

Many thanks

Roger

[maths]

Shares of a UK registered company under common law are located where the company's register is located ie UK.

There are strong arguments that in the scenario described no remittance to the UK has occurred (assuming relevant foreign income and/or foreign gains have been used as opposed to "clean" capital). However, it is known HMRC disagree.

It would be ill advised to assume no remittance and simply fail to disclose. So either disclosure on the assumption of a taxable remittance has occurred or make no disclosure of the am count of the "remittance" but explain the grounds and circumstances in Box 40 of SA 109 (ie the relevant form for disclosure).

I assume monies involved are £2,000 or greater.

[roger88]

thank you for your quick answer !

Assuming there is no disclosure , how likely HMRC will know
and be aware about the remittance ? ( assuming the share have been sold very quickly with the same offshore bank/broker and no dividend have been received, only CGT ..)

Best

Roger

[maths]

Hoary old chestnut. !

Can’t answer.

[roger88]

thank you

[AGoodman]

About 28% chance...no, actually closer to 27%.

In actual fact, the situs of the company depends on the location of the share register and most (if not all) companies in this situation still have the share register in the UK; but they have some funny arrangements which can lead to an argument that the effective register for these purposes is one in the States. However, it is no more than an argument so not a reason not to disclose at all unless you can get very comfortable with it.

There is no exception for remittances where the monies are removed again quickly.

[roger88]

Ok got it !
it was very unclear at first due to the stock exchange location !
i think it’s a common trap for non-Dom..
Thank you