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I'm a US citizen, lived my entire life in the United Kingdom.

If I were to earn capital gains from US assets bought and sold through a US bank account, do I have to declare those gains in the UK?

  • From what I can find online, you do not have to pay CGT in the UK on foreign income. I can't say definitively though. – Michael Hartmann Jan 1 '18 at 2:12
  • @MichaelHartmann: CGT is a tax on gains not income, so arguably you're technically correct... however UK tax residents certainly are due to pay UK tax on foreign gains and income; there's a whole foreign section of the Self Assessment form devoted to collecting information on this. Think about the implications if this wasn't true: noone would hold domestic assets, everyone would invest abroad. (Of course that's exactly what some folks do do and hope HMRC won't find out when they don't declare gains or income... but they're considered tax evaders!) – timday Jan 9 '18 at 22:40
  • Although this isn't a duplicate question, some of the links in my answer to another question involving capital gains in the US may be relevant (although that question focused more on additional gains/losses due to [delayed] currency conversion). – TripeHound Jan 10 '18 at 8:33
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As a UK resident taxpayer you're certainly potentially liable to pay capital gains on assets wherever they are in the world. See "Overseas assets" halfway down this gov.uk page.

Whether you have to declare them and/or actually pay any tax depends on whether the amounts and gains involved are above certain thresholds (around £11000); for more detail see the guidance accompanying Self Assessment and/or get advice. If you end up being taxed twice (because you've already paid some tax on the gain in the USA?) it's possible to get relief; see notes on CGT lower down this page.

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