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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My question relates to profits & losses on buying & selling

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My question relates to profits & losses on buying & selling US shares. As a UK citizen living in the UK, I hold money in a Citibank account in London which is then used to trade US shares. I presume any tax due on the profits is due to the UK Inland Revenue (rather than the US IRS)? - and the more important part of my question, how do I deal with losses to offset profits i.e. if I made some losses in previous years can I declare these to avoid CGT on profits which I might make in this tax year? (& if so, how many years can I go back to declare the losses? i.e. what is the earliest tax year I can use?)
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

You should claim your losses by including then on your tax return.

You don't have to report losses straight away as you can claim up to 4 years after the end of the tax year that you disposed of the asset (shares).So for any losses made in the tax year 2009-10 you have up to tax year 2013-14 to claim them.

When you report a loss, the amount is deducted from the gains you made in the first year. If your taxable gain after offset of loss is still above the tax free allowance of £10,900 (Tax year 2013-14), you can deduct unused losses from previous tax years. Any remaining losses are carried forward to a future year till such time they are exhausted.

More information on this and examples can be found here

https://www.gov.uk/capital-gains-tax/losses


http://www.lawpack.co.uk/tax/tax-magazines/articles/article7653.asp

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.


Customer: replied 2 years ago.

OK - thanks, ***** ***** helpful. So I think you're saying that even though these are US shares (NYSE/Nasdaq etc) which I'm buying/selling this is all handled through my UK tax return - is that correct, and if so do I need to apply for any sort of waiver to the US authorities so that they don't come chasing me for tax as well?

Expert:  taxadvisor.uk replied 2 years ago.

Samuel, thank you for your reply.

You should report all capital gains and losses through your UK tax return.
If you have paid foreign tax on these gains, you should claim foreign tax credit relief by completing supplementary pages SA106 - Foreign (section headed Capital gains - foreign tax credit relief).

I hope this is helpful and answers your question.

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.

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