Like Tree23Likes

UK offshore investing

Reply
Page 3 of 3 FirstFirst 1 2 3
  1. #21

    Join Date
    Oct 2010
    Posts
    18,906
    Quote Originally Posted by Jamthe
    If you’re abroad You have to pay tax on gains you make on property and land in the UK even if you’re non-resident for tax purposes.
    This depends on how long you've held the property. In my case, despite substantial capital gains (GBP350k) there was no CGT liability as I held the property for a long time before the rules changed in 2015. You can find out more here, and use their calculator to assess different cases.

    https://www.gov.uk/guidance/capital-...e-gain-or-loss
    kittykaitak likes this.

  2. #22

    Join Date
    Aug 2012
    Location
    Location Location
    Posts
    705
    Quote Originally Posted by pin
    This is my understanding. But then again I have no significant assets in the UK, don't make a self assessment and am non-resident there. As a result I've decided to hold some of my shares through HSBC Expat.

    But everyone has different tax considerations.
    Just to add, for the sake of completeness:

    If you use a UK-based broker (such as HSBC Expat's InvestDirect), you will be subject to UK tax laws.

    As a UK non-resident, it means you will still have to pay taxes on any income from your investments such as dividends. If these are quite low (below GBP11k per year) then in effect these will be below the tax threshold and will be zero tax. If however you gain rental income then the dividend income will be added to your rental income when you calculate your total UK tax liability.

    As a UK non-resident, you do not pay taxes on capital gains on shares and investments except for property and property-linked investments such as REITs. This applies as long as you have been non-resident for at least 5 tax years.

    Therefore, to reduce tax liability, if you are investing in ETFs it is best to look at accumulating ETFs and not distributing ETFs. This is where dividends are reinvested and so are shown as capital gains for which UK non-residents don't pay tax.

    Also, AFAIK, if you are moving back be very careful when you sell your shares to book your capital gains as a non-resident. You need to do so in the tax year before you become resident in the UK. So for example don't sell up all your shares in May, and then move back in June because you will become UK resident in the same tax year you sold up your shares. UK tax year starts on 6 April, so if you intend to move back after 6 April you need to book your capital gains before 6 April. Or you can avoid being a resident in a tax year if you live in the UK for fewer than 183 days in the tax year.
    shri, TheBrit, pin and 3 others like this.

  3. #23

    Join Date
    May 2018
    Posts
    1

    Useful thread, thanks everyone!

    Just on the taxation of dividends, this link seems to suggest they are taxable, except tax at source, but only if you then do not make use of any persons tax allowances for property income.

    To put it another way; if I have no property income then I can take dividends tax free...but if I have property income then I need to make a choice - am I reading that correctly?

    https://www.gov.uk/government/public...nt-income-2019


  4. #24

    Join Date
    Aug 2012
    Location
    Location Location
    Posts
    705
    Quote Originally Posted by apt-get
    Useful thread, thanks everyone!

    Just on the taxation of dividends, this link seems to suggest they are taxable, except tax at source, but only if you then do not make use of any persons tax allowances for property income.

    To put it another way; if I have no property income then I can take dividends tax free...but if I have property income then I need to make a choice - am I reading that correctly?

    https://www.gov.uk/government/public...nt-income-2019
    Yes that's my understanding too. I was referring to the OP's situation and was assuming his dividend income is would never be large enough for him to consider the choice.

Reply
Page 3 of 3 FirstFirst 1 2 3