Share profits taxable for expat

[rickybouy]

Hi all,

I am currently living in Dubai and have invested in a fair few shares in the UK over the last few months and am looking at maybe buying more in the coming weeks, my question is, are profits taxable and are they taxable even if living abroad?

Cheers Rick

[Eric Mc]

They shouldn't be subject to UK tax on the basis that you are not a UK tax resident (I am assuming this from what you say).

HOWEVER, there might be some mechanism whereby UK tax is deducted automatically from any payments made to you regarding dividends, scrip issues etc and you might have to apply to have any such tax refunded to you, or offset against any Dubai tax you might pay.

[ukshooter]

Are you UK domiciled - non UK resident? if so there is a good chance that there will be potential liability to Cpital Gains tax. If you are not UK Domiciled, then things are different.

How long have you been in Dubai or non UK resident? I haven't worked in the expat financial markets for a good few years so haven't kept bang up to date with what the rules are but can easily check if you confirm what your domicile status is.

[rickybouy]

Thanks for the replies i have bee living in Dubai for 4 years and i am planning on returning to the UK in the next 2 years, i pay no UK tax at all as my salary etc is paid directly to my Dubai bank account, so i am out of the country the minimum of 180+ days required, does that help?

Thanks again Rick

[Eric Mc]

Are you UK domiciled? Domicile is not based on where you live, but based on where you are from. Were you born in the UK?
UK means - England, Northern Ireland, Scotland and Wales. It does not include the Isle of Man or the Channel Islands.

[rickybouy]

Hi Eric,

Thanks for the response, yeah very much born and bred in UK and still have bank accounts there and houses.

Cheers Rick

[davemac250]

Have you considered 'wrapping' the holdings to protect against taxation?

Many, many options available to you.

Life assurance.

Trusts.

Foundations.

Problems can arise if you are looking to be an active trader though.