travelfar

Hello
When moving back to UK from Europe, what CGT tax rate will I pay on a self-managed portfolio of shares held in USA ?
I have just read about Reporting Funds and Non Reporting Funds and am somewhat panicking about the 45% CGT rate for the latter. Are shares held in USA considered Non Reporting Funds ?
Thank you for any insight into this.

durham_lad

Here is the current list of HMRC reporting funds. In general if you hold a US mutual fund containing a mix of bonds and equities then it is unlikely to be reporting into HMRC. Many ETF funds are HMRC reporting. If you hold mutual funds within an IRA or equivalent then their reporting status is irrelevant as all distributions from the IRA are taxed at regular income rates, up to 45%

https://www.gov.uk/government/public...eporting-funds

I think non-reporting funds dividends and capital gains from the sale of shares are taxed as regular income, and the tax rates on regular income are up to 45% which is currently the highest tax rate on income. The advantage of reporting funds is that dividends are taxed at a lower rate and capital gains on the sale of shares are taxed at a maximum of rate of 20%.

The following article gives some info on this

https://planfirstwealth.com/reportin...porting-funds/

travelfar

Many thanks durham lad. The link was interesting reading.
I am not sure that I hold 'funds' as my investments are individual shares held within a self-managed trading account. Are shares held in this way considered a 'fund' ?
I am rather concerned about the 45% rate for my situation !! 47% in Scotland I believe !
Thank you again.

durham_lad

If you have income over £150k then having to pay 45% on that extra income is not something I would be concerned out. I would be delighted if I was in the 45% bracket.

Here is the current year tax brackets.

https://taxscouts.com/the-tax-basics...ear-2021-2022/

travelfar

oh, I see, the CGT would only be 45% if one was already in the higher tax bracket. I was thinking that CGT on non-reporting funds was 45% irrespective of income level. I am now assuming you pay CGT and income tax on dividends at one's marginal rate. Does this sound correct ?
Thanks again, much appreciated.

durham_lad

Yes, that is my understanding.

durham_lad

I forgot to answer this. If you only hold individual shares within your self-managed trading account then these are not considered to be funds. (I assume that the funds are listed on the stock exchange).

travelfar

Thanks durham lad. Your input as usual is excellent and much appreciated. We 'british expats' are lucky to have the likes of you sharing your knowledge and opinions.