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  • 1 Post By mun35
  • 1 Post By GentleGeorge

Trading shares and bonds on IB

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  1. #1

    Join Date
    Jan 2013
    Posts
    75

    Trading shares and bonds on IB

    Hi friends,

    For British nationals living in Hong Kong, are there tax implications for trading US shares or US treasury/bonds on Interactive Brokers? I'm a bit confused about how US trades are taxed, as I believe there's no tax treaty between US and Hong Kong in place.

    Any advice appreciated.

    dave_van_damn likes this.

  2. #2

    Following with intrigue. I thought there's no capital gains in HK so as long as you are no longer UK tax resident, I thought that investment would be tax free. No?


  3. #3

    Join Date
    Feb 2019
    Posts
    3,250
    Quote Originally Posted by Seaturtle:
    Following with intrigue. I thought there's no capital gains in HK so as long as you are no longer UK tax resident, I thought that investment would be tax free. No?
    This is true. No capital gains.

    I have heard that if you use a UK securities account (IBKR UK, HSBC UK account etc.), the UK tax authorities might try to claim this as a "connection to the UK" and tax it. I don't know if this is true but it seems sensible to avoid this hassle by opening a HK IBKR/HSBC brokerage account.
    Morrison likes this.

  4. #4

    Join Date
    Mar 2010
    Posts
    6,761

    It has implications for the dividends that you receive as there is something called “US dividend withholding tax at source “. AFAIK, it also applies to bonds, unless they are exempt due to the nature of the issuer.


  5. #5

    Join Date
    Sep 2019
    Posts
    4,899

    Considering One Country, it’s awful that DTT doesn’t apply.


  6. #6

    Yes, this is correct as treated as UK based assets.

    For USA, only the distributions would usually have any tax element attached to them. Some invest in Ireland based or LSE funds to try to avoid this (with a hk based brokerage account).


  7. #7

    Join Date
    Dec 2002
    Location
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    48,089
    Quote Originally Posted by GentleGeorge:
    a HK IBKR/HSBC brokerage account.
    The last time I checked HSBC brokerage and retail involved placing phone orders for UK shares and expensive. DBs works better as an alternative to IB.

    Not even fax...phone orders.