Question
Can I use my yearly capital gains tax allowance against Barclays ishare ETFs and other foreign registered shares?Answer
Yes you can. Gains made on foreign shares are treated in the same way as UK shares, meaning gains can be offset against your annual capital gains tax allowance, currently £10,100.
If the shares are traded in a foreign currency then the purchase and sale prices must obviously be converted to pounds sterling based on the exchange rates at the time.
The same is also true if you profit from exchange rate movements when holding foreign currency in a savings account (note, the gain is only triggered when you withdraw money from the account).
[If you're tax resident in the UK but domiciled abroad then gains on investments held overseas are not subject to UK capital gains tax (under the 'remittance' basis) unless you bring the gains into the UK. But in this scenario you won't get an annual capital gains tax allowance.]
Income is more complicated, as it may be subject to foreign withholding taxes which may be partially or fully credited against any UK tax liability.
Can I use my yearly capital gains tax allowance against Barclays ishare ETFs and other foreign registered shares?Answer
Yes you can. Gains made on foreign shares are treated in the same way as UK shares, meaning gains can be offset against your annual capital gains tax allowance, currently £10,100.
If the shares are traded in a foreign currency then the purchase and sale prices must obviously be converted to pounds sterling based on the exchange rates at the time.
The same is also true if you profit from exchange rate movements when holding foreign currency in a savings account (note, the gain is only triggered when you withdraw money from the account).
[If you're tax resident in the UK but domiciled abroad then gains on investments held overseas are not subject to UK capital gains tax (under the 'remittance' basis) unless you bring the gains into the UK. But in this scenario you won't get an annual capital gains tax allowance.]
Income is more complicated, as it may be subject to foreign withholding taxes which may be partially or fully credited against any UK tax liability.
Read this Q and A at http://www.candidmoney.com/questions/question193.aspx
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