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 TaxRobin Your Own Question
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17839
Experience:  International tax
Type Your Tax Question Here...
TaxRobin is online now

I am an Spanish citizen on my last year as a non-dom (First

This answer was rated:

I am an Spanish citizen on my last year as a non-dom (First moved to the UK in May 2010). I have stocks in the US and Europe that I am thinking about selling to finance the purchase of a home in the UK. Should I sell these stocks this fiscal year (15/16), wait until next year when I am UK domiciled, or a combination of both? Also, if I sell the stocks as a non-dom at what point (and what rate) will I have to pay the CGT? When I send the funds to the UK?
HelloIf you sell prior to moving to the UK the you would not be taxed on the proceeds in the UK.If you’re not UK resident, you won’t have to pay UK tax on your foreign income.If you sell while still non domiciled then you will not pay tax in UK when you move the money. If you wish to avoid UK sell prior to domicile.
Customer: replied 2 years ago.
Thanks for your response... Just to clarify, I am currently in the UK and have been for the past 6 years (as a non-dom). If I understand your answer correctly, if I sell all my assets in the next couple of days, the capital gains I have accumulated to date are UK tax free? Even after I transfer the money in the next fiscal year (in a couple of weeks)?
That is correct. If you are domiciled outside the UK then you would not pay tax on foreign gains
Customer: replied 2 years ago.
Thanks again... it just seems too good to be true!!! Just to summarize then, if I sell all my investments in the US and Europe this fiscal year (while I am a non-domiciled) and then bring the proceeds to the UK in a couple of weeks (in the next fiscal year, when I will be UK domiciled), I will have no CGT tax liability. Is this correct?
You will not pay tax on them as long as they’re less than £2,000 in the tax year ANDyou don’t bring them into the UK, eg transfer them to a UK bank accountIf they are more then £2,000 you must report on self assessment.There is still relief fro m tax if you claim remittance (if you bring the money in).Right now it hinges on the amount of gain.
Customer: replied 2 years ago.
Ok... so if the gain is £20k this year (while I am a non-dom) and I bring the money into the UK during the next fiscal year I will have to pay CGT tax in the UK (£20k minus £11k allowance * 20% CGT rate). Is that correct?
That would be correct.
TaxRobin and other Tax Specialists are ready to help you