Capital gains tax on tax exempt accounts in previous country

[Ziv123]

Hi,
I've recently moved to the UK without planning.
I have accounts in my previous country of residence (Israel) that were exempt from tax there, and have been invested for 20 years before I moved.
If I withdraw money while I'm a UK resident, will I have to pay ctg for all the years it has been invested? Or do they somehow prorate it just for the time I've been a UK resident?

Thanks

[AGoodman]

What sort of account?

If it's just a bank account then you would only pay tax on interest that has been credited since you became UK resident. That's the case irrespective of whether you withdraw it or not. It may well be covered by the savings allowance anyway (£1,000 for basic rate taxpayers, £500 for higher rate taxpayers).

[Ziv123]

It's similar to a stocks and shares isa. I hold mutual funds there. It holds capital gains of about 20 years that I've never liquidated.

[DavidTreitel]

Assuming these are non-UK reporting funds and you are filing on the arising basis you will owe UK income tax - not CGT - on any gains. Losses are not offset from offshore income gains.

[AGoodman]

The issue is not so much a withdrawal as the fact you will presumably be selling units/shares in the mutual funds you mention. That is a disposal for capital gains tax and, as the UK is unlikely to recognise the Israeli equivalent of an ISA, you would have capital gains tax on any net gains.

You can see if the funds have UK reporting status here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/940950/201201-weblist.xlsm

(they probably won't unless they are targeted at UK based investors)