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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4344
Experience:  FCCA FCMA CGMA ACIS
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Hi, I am Non-resident to the UK and working abroad. Since

Customer Question

Hi, I am Non-resident to the UK and working abroad. Since moving abroad, I have purchased shares in the UK AIM market. If i was to sell them before moving back to the UK would I be subject to CGT? Also, would this change if I was to sell after returning to the UK?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question. My advice is based on the principle that you have been non-resident for over five years (see the restriction in the HMRC advice below).
Here is the HMRC advice on CGT for non-residents:
'Tax on capital gains from assets in the UK
If you're not resident in the UK, whether you pay Capital Gains Tax on UK assets will depend on a number of factors:
If you have previously lived in the UK, and if so, when you left the UK, the period of time you were resident in the UK before your departure and the length of time you live abroad
Whether you are still ordinarily resident (only for tax years up to and including 2012-13) in the UK - that is, your normal home is the UK
Whether the assets are held for the purpose of carrying out work through a UK branch or agency.'
From the tenor of your question it would appear that you would escape CGT on the sale of your shares as you are non resident and sell them whilst overseas.
Once you are resident you may well be liable to CGT on the gain made on share sales, but remember that you do have an Annual Exempt Allowance (AEA) of 11K to offset any gain so if you can stagger sales over two or more tax years you multiply the AEA.
May I suggest you read the HMRC release on this matter, you will find its at:
http://www.hmrc.gov.uk/international/tax-incomegains.htm
Please remember that the UK has Double Taxation Treaties with innumerable countries which preclude an individual being taxed twice so if these gains are taxed in your current country of residence a tax credit will be created which is allowable against any UK tax levied on the same transactions.
I do hope I have helped shed some light on your conundrum.