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Posted Mon, 15 Jan 2024 20:26:02 GMT by
In 2022 I purchased non-UK shares in a brokerage account outside of the UK. I am not a British citizen, and in 2022 I was not a UK resident (I was a resident of a foreign country - my home country). In 2023 I moved to the UK and became a UK resident, but not UK domiciled. For 2023/2024 tax year I will claim the remittance basis. Now (January 2024) half of those shares that I purchased are marked-to-market at a loss (because I bought them when the price was high and then the price dropped signficantly) and the other half of shares are at moderate mark-to-market profit. Question 1: If I sell those shares that are currently in a loss position and move the proceeds into my UK account, would I be liable for any taxes (e.g. Capital Gain Tax)? As far as I understand, the answer is NO, as there would be no capital gain. Question 2: If I sell all shares that are currently in a loss position and some shares that are currently in profit, so that my net result is still negative, would I be liable for any taxes (e.g. Capital Gain Tax)? As far as I understand, the answer is NO, as cumulatively there would be no capital gain. Question 3: What documentation is required to support that the sales of the shares did not result in a capital gain? I can get reports from my US broker showing the prices at which I bought the shares as well as the dates when the shares were bought (to show that those shares were purchased before I became a UK resident) and clearly the details of prices and dates from the shares were sold - I beleive that such documentation should be sufficient.
Posted Wed, 17 Jan 2024 15:42:11 GMT by HMRC Admin 10 Response
Hi
HMRC cannot comment on future events.
You should refer to guidance at Paying tax on the remittance basis (Self Assessment helpsheet HS264) and Shares and Capital Gains Tax (Self Assessment helpsheet HS284) meantime

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