Iurii

Thank you so much for your help.

Hello, We have almost the same situation(shares were gifted from me to my wife) as described in https://community.hmrc.gov.uk/customerforums/cgt/56baeeb5-32f7-ec11-b5cf-00155d9c6b71#6d54fdb5-32f7-ec11-82e7-6045bd0e78f9. In our case, shares are issued by non-reporting non-distributing fund, so gain is taxed as income, not as capital gain. Could you confirm that: 1. Gain is a difference between what I paid for the shares and what my wife sold them for. 2. Taxes on gain are based on my wife income: she should earn £20,000 at work in this tax year before taxes(she is basic rate tax payer), so next £30,271 of gain(she should have far less gain) are taxed at 20% rate. Thanks.

Hello, Thank you for the reply. >Hello, I invested USD two years ago in a mutual non-reporting fund incorporated in Grand Caiman. At that moment, I was a tax resident >of another country. Now I am a UK tax resident, so I am trying to figure out the tax consequences of a disposal of shares of this fund. Sorry for the confusion, I mentioned in the beginning of the this thread that the assets are shares of non-reporting non-distributed mutual fund, nominated in USD. All my questions are related to these assets.

Hello, Could you advise on questions above please?

Thank you. > There is also the annual exempt allowance for capital gains of £12300.00. In this case a gain seems to be taxable as income, so no capital gains allowance or rates are applicable here. Is it correct? >There is the potential for there to be a gain arising from the sale of the shares. The acquisition costs would be used to work out if there is a gain I am still unsure about the following things in this case: 1. If my wife sells gifted shares, could she use acquisition costs(initial shares price in GBP + fees in GBP, which I paid, not my wife) to calculate a gain? 2. As I mentioned above, a gain seems to be taxable as income(I and my wife have different tax bands). Will only her tax band be considered(not mine) to calculate taxes if she sells gifted shares? PS Sorry for the myriad of questions: I am a newbie to the UK tax system.

Hello, I've realised I have several more things to clarify. I didn't mention that the fund is non-reporting and non-distributing: no dividends, just an accumulation of a gain inside the fund. 1. Should a gain be calculated as "sell shares price in GBP" - "buy shares price in GBP" - "fees on buy/sell in GBP"? 2. I am thinking about gifting the shares to my wife. Am I correct that this gift will be tax-free? 3. If my wife chooses to sell them: a. Will a gain be subjected to income tax depending on her tax band, not mine? b. Should a gain be calculated as "shares price in GBP, when my wife will sell them" - "shares price in GBP, when I bought them" - "fees in GBP which my wife will pay on sell" - "fees in GBP which I payed on buy ". Thank you.

Great news. Many thanks!

Hello, Thanks for your reply. I briefly read the links and still have several things to clarify. Could you please kindly clarify two points: 1. Expenditures I didn't find relevant examples in the section about the disposal of shares. My broker charges me two kinds of fees: a) A fee on a buy/sell shares b) An everyday fee for holding the shares Could these fees be deducted from the gain as "incidental costs of acquisition and disposal"(https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg15250)? 2. How to calculate the tax in case if I calculated the gain in the right way in the previous point. I am a basic rate taxpayer in this tax year. Am I right that if a sum of my salary in this tax year and the gain is below 50k, then the gain will be taxed at a 20% rate? Thanks.

Hello, I invested USD two years ago in a mutual non-reporting fund incorporated in Grand Caiman. At that moment, I was a tax resident of another country. Now I am a UK tax resident, so I am trying to figure out the tax consequences of a disposal of shares of this fund: 1. Am I correct that gain from the disposal of the shares is taxed as income? 2. The gain should be calculated in GBP, so I need to convert a buy/sell price of the shares from USD to GBP and calculate it using GBP amounts. Could I use monthly exchange rates from https://www.gov.uk/government/publications/hmrc-exchange-rates-for-2021-monthly for a corresponding buy/sell date? If not, where could I find the right ones? 3. My broker has a buy/sell fee. Could I deduct these fees from the gain? 4. How should I declare the gain? How should I calculate a tax to be paid? 5. If the gain in GBP is negative, should I declare it? Could you please help me to find the answers? Thank you very much.