CGT etc issues on sale of shares in a USA listed compnay

[The Leaper]

Over many years, by regular investing I have built up a reasonable number of shares in a company listed on a USA stock exchange. Quarterly dividends are reinvested in the same shares. In the USA I have filed regularly, as required, a form W8-BEN as a non-resident alien for USA IRS tax purposes.

I am now thinking of disposing of some of these shares. I have the following issues:

1. As far as the USA IRS is concerned, as a non-resident alien having submitted form W8-BEN, my understanding is that on sale of the shares I am not liable for any USA tax. The full proceeds (less any costs) of the share sale can be paid to me into the UK.

2. As far as the UK is concerned, my understanding of HMRC’s rules is that if in the current tax year the full proceeds of the sale

(a) do not exceed £46,800 (which is 4 times the allowance £11,700), and

(b) the capital gain does not exceed the allowance of £11,700,

then I am not required to declare the capital gain when completing my self-assessment for the current tax year.

Am I correct?

R.

[coletrickle01]

Sounds right to me

[Boz123]

Agree. Sounds about right.

[anonymous-user]

The annual CGT allowance is an aggregated total, not per transaction. So the position set out may only be correct if you have no other gains or losses in the year.

For instance, if you have gains of £20k and losses of £10k you might think you'd fall within the "no need to file a return" category, but you wouldn't.

[The Leaper]

Thanks Coletrickle01, boz123 and rockin for your responses. It's good to get confirmation that my thinking is correct.

rockin, I am thinking that I will make a single stock sale with potential capital gains tax implications transaction per tax year.

R.