Sold shares when not a UK tax resident, but then retroactively became UK tax resident

Dear HMRC Community Forum, I moved to the UK on a dependent visa in March 2023 (unemployed in the UK). I sold shares (Canadian mutual funds) in April 2023 (after April 6, 2023). At the time of the sale, I was not considered a UK tax resident because I had not been in the UK for 183 days. I achieved 183 days in the UK in September 2023 which, to my understanding, qualified me to be a tax resident of the UK for April 6, 2023 to April 5, 2024. Does this mean I need to report to the HMRC capital gains for the aforementioned shares sold? Thank you for your assistance.

Hi Canadian,
Your residence status is worked out for the whole tax year, from 6 April to 5 April.
As you state you are UK resident then yes, you would require to declare your worldwide income in your Self Assessment tax return.
Please see Tax on foreign income:
Tax on foreign income
Thank you. 

 

Dear HMRC Admin, Thank you for confirming. Following up, I understand that I would report the sale value on the day the shares were sold, as well as any associated costs with selling the shares. Question 1: For the initial value of the shares, theses were purchased years ago when I was living in Canada (had only ever lived in Canada up until the move in 2023) and do I understand correctly that I would use the share value on the date of purchase and not on the date I moved to the UK for the initial share value? That is, my emigration dates are inconsequential in the calculation. Question 2: If also taxed by Canada on the sale of the shares, would I apply to the Canadian Revenue Agency or to the HMRC for tax relief, since there is a DTA in place between the two countries? Thank you for your assistance.

Hi,

1. Yes, the original purchase date and price are your cost details.
2. You can claim foreign tax credit relief on the Canadian tax to reduce your UK bill.

Thank you.

Dear HMRC Admin, Where in SA108 would I report the capital gains from the sale of the Canadian mutual fund? Listed shares and securities? Unlisted shares and securities? Similarly, I sold shares in Canadian ETFs for which I have gains and losses. Where would I report these? Thank you for your assistance.

Hi ,
 

You would need to check with the fund to ascertain if the shares sold were listed or not in order to complete the correct section. The same applies to the ETF's  . Thank you .

Dear HMRC Admin, Thank you for your reply. Some follow-up questions: 1) Does listed/unlisted refer to status on the following? https://www.gov.uk/government/publications/designated-recognised-stock-exchanges-section-1005-income-tax-act-2007 2) To clarify, I would still use SA108 for capital gains for my Canadian mutual fund and Canadian ETFs, just needing to fill in the appropriate section depending on whether my shares are listed or unlisted? Thank you for your assistance.

Hi,

Yes, for both questions.

Thank you.