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HM Accountax Ltd
HM Accountax Ltd, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 201
Experience:  I am an accountancy professional with more than10 years hand on experience in audit, accountancy and tax affairs.
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I have a question on how the foreign income is taxed in the

Customer Question

Hi, i have a question on how the foreign income is taxed in the UK? I have invested in some stock trading in the US, and have made some gains. i would like to bring the money back to UK. how will i be taxed on this?
JA: Which tax year is this for?
Customer: this year 2020
JA: Anything else you want the Accountant to know before I connect you?
Customer: nothing
Submitted: 18 days ago.
Category: Tax
Expert:  HM Accountax Ltd replied 18 days ago.

Hi,

I am an advisor at Just Answer and i am happy to assist you with your query.

You will be liable to pay CGT on the gain on disposal of assets. If the gain is already taxed in US then you'll get Double taxation relief.

I hope this answers your query.

Regards

HM Accountax

Customer: replied 17 days ago.
I am basically a day trader and i trade US stocks, and this is the only way i make an income. so in this case i pay capital gains tax only? or is there additional tax to be paid?
Expert:  HM Accountax Ltd replied 17 days ago.

If you are day trader then you'll pay income tax not CGT.

Customer: replied 17 days ago.
is there a HMRC document which explains more on this? would you be able to share it with me please. Also i dont understand why would i have to pay the normal income tax in the UK and not the capital gains tax only.
Expert:  HM Accountax Ltd replied 17 days ago.

Please see below the link from HMRC website regarding the CGT.

https://www.gov.uk/capital-gains-tax

with regards ***** ***** it as trading income, you can search the case law: Akhtar Ali v HMRC UKFTT 8 (TC)

I hope it answer the query.

Regards

Muhammad