reimondo

Dear HMRC, I obtained incentive shares at zero cost from a company I worked with a few years ago, before I became a UK tax resident. I am no longer with that company. I am referring to HS287 but not sure how to determine the capital gain cost, if I were to dispose these shares later. There is no restriction on the time I sell them. I can keep them or sell them at any time. Also, there is no risk of forfeiture. So, it seems the capital gain cost should be the actual cost, which was zero; however, HS287 also mentions that, in general, the cost is the market value at the day I obtained these shares. May I have your help, please? Thank you.

Dear HMRC, I am an individual. I do not have a business but would invest foreign stock shares. As a result, I performed some exchanges between GBP and other currencies. Is investment on foreign stock treated as personal expenditure such that the currency exchange will be excluded from CGT? If the investment is subject to CGT, may I check with you if my understanding below is correct? For the situation below: 1. Change from GBP to USD; 2. Buy stocks with some USD got from step 1; 3. Sell stocks and get USD; 4. Sell all USD and obtain GBP The CGT due to selling the stock shares (step 3) is based on the gain (proceeds in GBP minus cost in GBP). So, this gain has covered the gain due to both selling the stock and the currency exchange at the same time. When I sell all USD (step 4), the remaining USD not used to buy the stocks in step 2 will be matched with the cost in step 1 when we calculate the CGT. For those USD involved in the stock shares transaction, they will not be matched with the cost in step 1 because the gain due to currency exchange has been taxed in step 3 already. Thank you!

Dear HMRC admin, I sold an ETF that tracks the performance of S&P 500 (denominated in USD) and bought its equivalent denominated in GBP on the same day. Does the bread-and-breakfast rule apply to this scenario? Thank you.

"If you receive notional distributions which are subject to Income Tax, you’re allowed the amount of these distributions as additional expenditure on your accumulation units." The above is an excerpt from HS284 for accumulation funds... May I clarify with HMRC whether my understanding below is correct? 1) For notional distributions from an offshore accumulating ETF, they are subject to Income Tax as dividends and to be parked under "Dividends from foreign companies" in SA106. They are not parked as "Interest and other income from overseas savings" in SA106. 2) After putting the notional distributions as Dividend Income in SA106, I am entitled to increase my total cost for the accumulating ETF. As a result, the capital gain tax incurred when I sell the ETF in the future will be reduced. Thank you.

I received cash rewards from an overseas bank due to opening a new account and invested in their product. I went through SA106 but am not sure where I should park this income because: 1. The cash rewards were not due to savings; 2. The cash rewards were not dividends. Since it is a foreign bank, it also seems not suitable to put it in SA101. May I ask for your advice. Thank you!