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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5147
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I'm thinking about opening a Forex account with an Australia

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I'm thinking about opening a Forex account with an Australia broker. I have a question about tax! I've researched it but it's all a bit vague. As I understand it Australia doesn't operate the W-8BEN system for UK resident citizens (seems only to refer to the US) . As I'll be paying tax in Australia, how is tax handled here in the UK? Obviously I don't want to get clobbered twice (a possible rate of 80%) as there'd be no point in trading.
Look forward to hearing from you.
Many thanks
Hello and welcome to the site. Thank you for your question.

As a UK resident and of UK domicile you are normally taxed on your worldwide income and gains.

You would claim foreign tax credit relief on any tax suffered in Australia. So you are not taxed twice on the same income. You would file supplementary pages SA106 - Foreign to claim foreign tax suffered.

More information on how foreign income/gains are taxed is covered here

I hope this is helpful and answers your question.

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