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Posted Thu, 13 Jan 2022 18:38:46 GMT by Mark
Hi, as the capital gains from sales of US shares will not incur any capital gains tax from US Government, that can also be interpreted as paying 0% capital tax to US. So according to the Dual Tax rule, the people will not be charged twice and pay the lower of the tax between 2 countries. can we interpreted as that any capital gain from share sell in US should pay 0 tax under UK system, so that means, the sale of the US stock should not pay any capital gain tax in UK, please tell whether this interpretation is correct according to the tax law.
Posted Mon, 17 Jan 2022 12:35:55 GMT by HMRC Admin 19
Hi,

If you are UK tax resident then the gain would be reported to the UK and any tax suffered in the US would be given as a credit. If no tax is suffered then the Capital Gains Tax would be due only in the UK. You can find more information here:

CG14380 - Computation: foreign tax and double taxation relief: tax credit relief

Thank you.
Posted Wed, 19 Jan 2022 14:33:53 GMT by Mark
Many Thanks for the reply. Having read through the regulation, I have a further question, as it saids " is only liable on the amount of the gain remitted to the UK". so if sb kept the gain in US account , rather than in UK, does that means no Tax needs to be paid?
Posted Wed, 19 Jan 2022 15:46:43 GMT by HMRC Admin 17

Hi,
 
If the remittance basis is being claimed, then the gain only needs to be reported when the income is brought to the UK. 

Thank you.

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