How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5028
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

, I am going to be non resident ( moving years contract

Resolved Question:

Hi, I am going to be non resident ( moving for 6 years contract to Abu Dhabi) but will have some income from FX trading. Do I need to pay a tax on that? I pay CGT at the moment from profit. Thanks
Al
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site.

Thank you for requesting I help you with your question.

If you are going to be non-resident for this length of time, may sure you are out of the country for 5 full tax years i.e 6 Apr 2015 to 5 Apr 2020. This way you will escape CGT on all profits made from FX trading whilst you remain non-resident in the UK for UK tax purposes.

More information on this can be found on HMRC helpsheet HS278 here (look at introduction para 3)
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323665/hs278.pdf

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.

Thanks for answer. But if I for some reason come back to UK in 2 years do I need to pay CGT for those 2 years?

Thanks

Expert:  taxadvisor.uk replied 2 years ago.

Thank you for your reply...

Any FX trading activity you performed whilst being a non resident in a tax year would escape CGT. Say you were out of the country from 6 Apr 2015 to 31 Dec 2017.
As you would have been non-resident for a full tax year 2015-16..gains arising in this tax year would not be chargeable to UK CGT.

Gains arising between 1 Jan 2018 to 5 Apr 2018 would be chargeable to UK CGT as you would claim split year treatment for tax year 2017-18 i.e. gains made whilst out of the country be excluded from CGT calculation.

I hope this is helpful.

Customer: replied 2 years ago.

Brilliant. Thanks for help.

Customer: replied 2 years ago.

Sorry I need to rate you. Please reply. Thanks

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it.
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.