MadRad

I have some shares in a UK company that I wish to sell. Having never sold shares before I'm unsure how to go about it, as the sharedealing company recommended by the listed company can't act for me as I'm not resident in the UK. Can anyone recommend a sharedealing service I could use?

I presume I'll need to declare any sale on a US tax return. Any pitfalls to watch out for? I won't be moving the proceeds to the US, they'll be staying in the UK.

Thanks in advance!

Yorkieabroad

I had a similar problem a couple of years ago when First Direct stopped doing phone dealing on shares (or maybe it was just for overseas customers) and I flipped everything into Etrade UK, who then promptly closed down!

I couldn't find anyone in the UK that would handle me here for a sensible fee, so I opened a US Etrade account, opened an International Account within that, and then transferred all my UK shares into there and its been fine since. It was a bit of a laborious process getting it set up, as each share needed a Crest transfer form, and the original share certs had to be sent off to the New York office for processing - that highlighted that some of the original share certificates had old addresses on, which had to be sorted out, but we got there in the end - took about a month I think.

Uncle_Bob

If you already paid your capital gains in the UK you dont need to declare it and pay up again in the USA. As far as I'm aware.

Yorkieabroad

I'm no tax expert, but I thought the CPA I use said I have to declare any gains but also declare any UK tax paid. Like I say, I'm no tax expert, but hopefully someone like nun will be along to give the proper line.

nun

Yep, you must declare capital gains, dividends etc from UK shares on your US taxes, dividends are a bit more complicated as the country where the company shares are located can withhold 15% tax. The tax treaty Articles 13, 10 and 24 are used to find out who gets what, but basically you have to work out where to pay the tax and then how to calculate the foreign tax credits.

nun

As a US resident you are liable for tax on capital gains on UK shares. Under the treaty you pay the US tax man first and then use that tax paid as a tax credit against UK tax. you will have to show the capital gains and relevant tax credits of your US tax return and a UK self assessment.

Cook_County

If you are not UK resident the UK CGT is zero as UK CGT is only chargeable on individuals ordinarily resident in the UK. Consequently it is only US taxes that woud be an issue.

FBARs and 8938s still required too.

nun

The liability to UK CGT will depend on the UK residence status and history of the tax payer. You can be not resident and not ordinarily resident and still liable for UK CGT. You need to work through the exact scenario and see if a self assessment is required.

http://www.hmrc.gov.uk/cnr/faqs_capgains.htm