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-   -   Investing while in Dubai? (https://britishexpats.com/forum/sand-pit-116/investing-while-dubai-650091/)

frood Jan 19th 2010 8:56 am

Investing while in Dubai?
 
Hello,

Just recently moved to Dubai and did a search for forums in Dubai...

Does anyone invest in shares UK / US here? I'm thinking of investing and am curious if anyone has any advice on an online broker?

Also - just trying to get my head around tax implications - am I right in thinking that any share sales made while in Dubai of UK or US shares will not be taxable in those countries? So any trades made here will be tax free?

Though if I return the UK in a few years and have a portfolio - any sales made once I return would be taxable?

Does this seem right? I know it's a whole big can of complicated worms but just hoping if anyone has any experience of share trades here they might be able to give a novice some advice...

Thank you for any help,

Frood

Meow Jan 19th 2010 9:03 am

Re: Investing while in Dubai?
 
Your tax position depends on a number of factors; whether you are UK non-resident for tax purposes, how long you remain so, and whether your profits (dividends or sale) would be considered income or capital.

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frood Jan 19th 2010 11:55 am

Re: Investing while in Dubai?
 

Originally Posted by Meow (Post 8261598)
Your tax position depends on a number of factors; whether you are UK non-resident for tax purposes, how long you remain so, and whether your profits (dividends or sale) would be considered income or capital.

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Ok.

For example leave UK in 2002. (and paid no tax since then)

Arrive Dubai 2010.

2014 Have 40,000 GBP in shares and sell.

Return UK late 2014 - then no tax payable.

OR

For example leave UK in 2002. (and paid no tax since then)

Arrive Dubai 2010.

Go back to UK 2013

2014 Have 40,000 GBP in shares and sell. (say purchase cost 22,000)

Then will have capital gains tax on 18,000 less personal allowance 10,100 currently

so would approx be 18,000-10,100*18% = 1,422

Is that roughly how this works? If so it's not as bad as what I thought...

Thanks for your response!

Meow Jan 19th 2010 12:03 pm

Re: Investing while in Dubai?
 
You are not exempt from Capital Gains Tax from UK profits unless you are non-resident for a full five tax years.

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lionheart Jan 19th 2010 12:05 pm

Re: Investing while in Dubai?
 
My understanding is that, if you have been out of the UK for at least five complete years (no stays in the UK for more than 90 days or whatever), you shouldn't be taxed on your profits. However, that would only apply if you sell your shares before you return. If not and you sell them when you have resumed UK residency, you will be taxed as normal. Over to you, Meow...whoops, sorry but post #4 was not there when I posted my answer.

Norm_uk Jan 19th 2010 1:55 pm

Re: Investing while in Dubai?
 

Originally Posted by Meow (Post 8262154)
You are not exempt from Capital Gains Tax from UK profits unless you are non-resident for a full five tax years.

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You're still giving free advice? ;)

N.

Meow Jan 19th 2010 2:00 pm

Re: Investing while in Dubai?
 

Originally Posted by Norm_uk (Post 8262561)
You're still giving free advice? ;)

N.

I am a kind & generous soul. Besides, I am the only one on here who seems to understand UK tax and can't bear to see the rubbish written if I don't answer.

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frood Jan 19th 2010 2:15 pm

Re: Investing while in Dubai?
 

Originally Posted by Meow (Post 8262154)
You are not exempt from Capital Gains Tax from UK profits unless you are non-resident for a full five tax years.

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Ah - many thanks! Yes, non-resident for 8 years in the example given.

Seriously - thanks. :thumbup:

Meow Jan 19th 2010 2:18 pm

Re: Investing while in Dubai?
 

Originally Posted by frood (Post 8262609)
Ah - many thanks! Yes, non-resident for 8 years in the example given.

Seriously - thanks. :thumbup:

You're welcome.

You know where to come if you want professional tax/investment advice now. ;)

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