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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10270
Experience:  FCCA FCMA CGMA ACIS
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You can only reply if your accountant knows about tax of

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You can only reply if your accountant knows about tax of foreign share sales
JA: Have you talked to a tax professional about this?
Customer: No, I thought you were the professionals
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: I had shares in a Dutch company which was sold. I had 25%. It is currently in a holding. There are 2 shareholders each holding the shares privately. I have own them for 25 years.
JA: When was the property or asset sold?
Customer: A fe weeks ago

What is your question, there is a possible liability to UK Capital Gains Tax (CGT) here.

Customer: replied 1 month ago.
My question is: I need to know if and where I have to pay tax on my sales on my shares. I live in the UK, am have a UK tax liability. The company is in The Netherlands The holding company has sold the working company. In the holding are 2 shareholders. I and my brother. My brother wants to keep the honding and buy me out. He wants to pay me 25% from his private means. So my brother pays me for the 25% in private. Where do I pay tax if any.

You declare the gain to HMRC in your Annual Self Assessment Tax Return. You have a non cumulative Annual Exempt Amount (AEA), currently 12.3K, to offset gains.

Customer: replied 1 month ago.
the private sale is not taxed in the Netherlands. I declare it in UK?

On the contrary it may be subject to Holland's CGT regime. In that event any tax paid there is allowable as a tax credit against your UK liability.

Customer: replied 1 month ago.
How do I know where to pay it then? Why do I pay it in NL as I pay UK tax.

Then it would normally be an UK taxation liability.

Customer: replied 1 month ago.
I have always paid UK tax and I assumed that the amount should be paid out for 100% and I submitted it on my Self Assesment form. Thank you so far. If you can let me know where I can contact you for further advice I would be grateful.
Customer: replied 1 month ago.
I can not continue exchange as I need to contact the offices in the Netherlands and they are closed. Hence how do I contact you again.

I do not think you need concern yourself with Netherland's tax. You can continue to contact me on this thread if needed.

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