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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14002
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have accepted a permanent job in Gibraltar and start in september.

Resolved Question:

I have accepted a permanent job in Gibraltar and start in september. I have a sizable (c£100K) portfolio of shares in FTSE 100/350 organizations and would like to understand if CGT would be due should I sell part/all of my shares whilst living abroad. I have been living in the UK to date during this tax year.
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi
Thanks for your question, I am Sam and I am one of the UK tax experts here on Just Answer.
When do you plan to sell these shares - and how long do you plan to reside out of the UK (you do advise its a permanent job - but do you envisage remaining out of the UK for at least 5 full tax years - so beyond 05/04/2020
Thanks
Sam
Customer: replied 3 years ago.

Probably stay in the role for 18-30 months minimum then evaluate job opportunities in the market - in UK and abroad.

Will probably continue to buy and sell shares during this period

Expert:  Sam replied 3 years ago.
Hi Nick
Thanks for your response and the additional information.
Unless
1) shares are sold when you are not resident in the UK
2) And you remain as treated as not resident for at least 5 full tax years
then you will have a UK capital gains on the sale of shares.
The first £11,000 will be tax free (as this is your annual exemption allowance as set for 2014/2015) and the remaining shares will be liable to 18% or 28% tax.
If your UK income is more than £41865 (bearing in mind the income from earnings abroad may well be treated as free of UK tax) then you will pay 28% capital gains tax.
If its less per year, then the equivalent of unused rate band (the full £31865 if no other UK income) will allow that gain at 18% and any remaining gain at 28%
To be treated as not resident - you have to have left the UK to live and work for at least a full tax year, with visits each year, exceeding no more than 90 days.
Whereas exemption from the UK capital gain position has to be at least 5 full tax years.
Let me know if you have any follow up questions
Thanks
Sam
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