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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5306
Experience:  FCCA FCMA CGMA ACIS
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I’d like advice from a tax advisor specialising in returning

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I’d like advice from a tax advisor specialising in returning expatriates and shares investments made while overseas.
I moved to Abu Dhabi in May 2010 and returned to UK in July 2016. While I was abroad, I earned a high salary without much spending, so I invested a significant amount (c. £200k) into foreign shares.
While I had some serious doubts about what I had invested in, (essentially whether I had fallen into an elaborate scam), another international broker has been able to sell these shares this week at close to five times the purchase price. So I’m set to receive a significant profit on my original investment in what I expect to be a very large single payment.
I am confident that this is all legitimate, as the broker has been corresponding with FINRA / Nasdaq and I have seen the evidence.
I’d like an advisor to confirm whether I will be liable to CGT on the share profits (I suspect I am), and if so, what my best options would be in order to avoid losing a lot of my profit as CGT. I’m earning £60k/yr in UK so am a higher rate tax payer.
Would opening an offshore account to deposit the funds make a difference? I’m also willing to re-invest a significant amount of the funds, but through UK registered brokers rather than international brokers.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Bad news I regret, you should have disposed of these holdings whilst you were in Abu Dhabi in the tax year before your date of repatriation. You would then have escaped UK CGT.

Now you will be liable for CGT on the whole gain made less your non-cumulative Annual Exempt Amount (AEA) of 11.3K. This gain less the ASA will be taxed at 20%. What you do with the cash released is entirely your own affair. For a tax-free environment, you might consider ISAs in 87/88 and 88/89 tax years

I am so sorry to have to rain on your parade. .

Customer: replied 5 months ago.
Thanks. I was anticipating a response like this. Even with paying the CGT I stand to make a good profit, so its been a good investment overall. Unfortunately, I wasn't in a position to dispose of the holdings when I was abroad.

Ah well. it's no use crying over spilled milk!

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