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bigduckontax, Accountant
Category: Tax
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I have sold few Stocks in the Indian stock market that I owned 8 years in Ind

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Hi, I have sold few Stocks in the Indian stock market that I owned for than 8 years in India. As it comes under Long term capital gains, it is exempt from taxation in India. My status: Arrived from India to Belgium and became an EEA citizen and then moved to UK for work since Jan 2015. From Uk taxation point of view, could you please advice 1. how much will be the tax rate for the capital gain income? Will this be exempt that is available for UK residents under the capital gains tax limit for each year?2. Is it taxable though i have not repatriated to UK yet or it will be taxed when I try to repatriate only?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
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Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. If you spend more that 183 days in the UK in any one tax year you are subject to UK taxation on your world wide activities. Thus any gain made on the sale of those Indian stocks would be subject to UK Capital Gains Tax (CGT). CGT is levied at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. You do have an Annual Exempt Amount (AEA), non cumulative, of 11.1K to offset any gain so if your profits on the sale of those Indian securities are below this figure there will be no CGT to pay. Whether or not you repatriate the moneys to the UK is irrelevant, it is the profit made on the sale which is taxed in the tax year of sale, subject to the AEA. I do hope that I have cleared the air for you in this matter.
Customer: replied 1 year ago.
Hi Keith,
I am bit confused for sure :-). I also have invested in stocks and shares ISA (10500 pounds till date) for the financial year 2015-16 but have not sold any of those shares yet. Does AEA come into picture only for the income from sale of shares or it also takes into account these investments I have made in the UK stocks and share ISA that has the limit of 15250 pounds up to which there is no capital gains tax? In short, my Indian share sale income will be around 7k pounds. Will it still come under the AEA of 11.1k or it will be impacted as I also have invested in stocks and share ISA? May be, I am not mixing the two?
Expert:  bigduckontax replied 1 year ago.
UK CGT only comes into play if you sell stocks and make a profit. Providing the profits you make in any one tax year do not exceed the AEA there is no tax due anyway. Stocks held within an ISA envelope are both Income and CG Taxes free and do not need to be declared at all. If you sell those Indian stocks and make 7K then that is below the AEA so no tax will be due. That assumes that you have made no other gains elsewhere. The ISA holdings do not count anyway.
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Customer: replied 1 year ago.
Hi Keith, Thats clear and precise. Thanks for answering the questions. I can now take a nap peacefully :-).
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
Customer: replied 1 year ago.
Hi Keith, One last question: Given that it is below AEA, should I declare this income through self assessment form or it needed be declared at all as it within the AEA limit? Please advice. Thanks in advance.
Expert:  bigduckontax replied 1 year ago.
Yes, you have to declare the gain on your annual self assessment tax return even if the gain is below the AEA limit. Delighted to have been of assistance.
Customer: replied 1 year ago.
Thanks Keith for the assistance.
Expert:  bigduckontax replied 1 year ago.
Delighted to have been able to help.