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Where Taxpayers and Advisers Meet

Theory planning with England winning world cup

billypiper
Posts: 11
Joined: Wed Aug 06, 2008 4:10 pm

Theory planning with England winning world cup

Postby billypiper » Tue Apr 23, 2019 4:37 pm

Non domicile resident over 7 years who has accumulated rental profits abroad of £300,000 in one tax year 2009/2010.

I want to pay the £30,000 RBC charge, so do not have to declare this in the UK.

One thought arises, is that I could wash it through as a spread bet where I would make a gift of the £200,000 abroad to another individual. As I am not UK domiciled for IHT, that would not cause a significant problem.

He could then place a spread bet that England will win the World Cup.

Say the 100 binary index is 21 sell 23 buy.

His bet will be at £8,695 to buy per point, his bet = 23*£8,695= £200,000.

I would place the opposite bet that England will not win. So my bet would be sell at 21 at £8,695 per point

England don’t win surprise surprise

I win 21@ £8,695= £182,608

He loses £200,000

But I now have access to my money in UK at a cost of £17,392 with no further taxes to pay.

If I knew the Spreadbet Company well enough, this could be lower.

Lots of hurdles I know, but is it a runner (the IHT bit not England winning!)

bd6759
Posts: 3069
Joined: Sat Feb 01, 2014 3:26 pm

Re: Theory planning with England winning world cup

Postby bd6759 » Tue Apr 23, 2019 11:20 pm

If you can get 5-1 odds that England will NOT win the world cup, I'm in. I think your money would be safe without laying it off.

AGoodman
Posts: 767
Joined: Fri May 16, 2014 3:47 pm

Re: Theory planning with England winning world cup

Postby AGoodman » Wed Apr 24, 2019 10:17 am

Ignoring the dodgy bits of that post :

If you received £300,000 of rental income in 2009/10:

(a) you are wealthy enough to pay for some proper advice; and
(b) you need to elect for the remittance basis for the year the income arose, not the year of remittance. If you were UK resident in 2009/10 then you are out of time to elect and need to pay UK income tax (plus interest and possibly penalties) on the income whether you remit or not. If you were not UK resident in 2009/10 then the income will not be taxable here, even when remitted.

billypiper
Posts: 11
Joined: Wed Aug 06, 2008 4:10 pm

Re: Theory planning with England winning world cup

Postby billypiper » Mon Apr 29, 2019 10:46 am

Thanks


This was an old post so say it is current.

I dont think the 5 to 1 odds are relevant as these were just used to illustrate the approach, the spread is the cost of the deal.

Just a theory thought ignoring anti abuse rules


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