2

Let's say Bob is a resident and tax domiciled somewhere outside the UK, e.g. Singapore.

Bob opened a stock brokerage account with a European broker, and the account is funded through a UK-based personal bank account.

Bob makes gains on his investments, quadrupling the value of his portfolio. He then liquidates the portfolio and withdraws all the money back into his UK account.

Bob now wants to remit all that money to his domestic bank account.

What tax liability does bob incur, if at all?

Im not concerned with Singapore tax liability, but any liability charged by the UK when attempting to transfer his profits to Singapore.

Bob resides in Singapore throughout this entire time, and is tax domiciled is Singapore. Both his UK Bank and his Broker knows this

  • I think the domicile of the investments and perhaps the broker may also be important, at least that's my impression from Degiro's (a well known broker "European broker") tax information: degiro.co.uk/tax.html . The UK bank account routing of the funds would seem to be an irrelevance. My main worry would be the UK bank will close your account as soon as they figure out you're non-resident, if unusual activity attracts their attention. Why not just have the funds transferred direct to a Singapore bank? – timday May 16 at 15:37
  • The investments are in US and European based securities. Full withholding tax is paid on interest etc on the US investments. But the majority of income comes from appreciation in the value of the security, which is capital gains. And Im unsure whether the UK will enforce a capital gains liability. As for bank accounts, the UK account is held at a bank which accepts non resident account holders. It's completely clear legally. The funds cant be transferred to a singaporean bank because the broker only allows transfers to and from european banks – Shazamo Morebucks May 16 at 15:48
3

As far as I can tell, you should be OK (but I am not a financial or tax advisor; this is neither financial or tax advice!)

According to the Tax on foreign income page on GOV.UK (emphasis mine):

Residence and capital gains

You work out your residence status for capital gains (for example, when you sell shares or a second home) the same way as you do for income.

UK residents have to pay tax on their UK and foreign gains. Non-residents have to pay tax on income, but only pay Capital Gains Tax either:

And from Capital Gains Tax from the same site (emphasis again mine):

If you’re abroad

You have to pay tax on gains you make on property and land in the UK even if you’re non-resident for tax purposes. You do not pay Capital Gains Tax on other UK assets, for example shares in UK companies, unless you return to the UK within 5 years of leaving.

So, for normal investments1, there should be no UK capital gains tax liability, provided you do not return to the UK within five years.


1 From the wording quoted ("property and land in the UK"), it's just conceivable that if (some of) your investments where in a REIT (real estate investment trust) that owned land or property in the UK then there could be a charge. If this were the case, you might need to dig deeper.

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