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Shares in US , living in UK. How does selling work? Especially with tax etc

(7 Posts)
cariad73 Wed 23-Oct-13 21:35:56

If he is a US taxpayer (US citizen or green card holder) its always more complicated than if he is a UK citizen and just happens to hold some US stocks.

Ooddoyouthinkyouare Wed 23-Oct-13 18:09:18

Yes he does that I think. He fills some US tax form in.

Its sounding more straight forward than I thought.

It's the last 'investment' he has other than our cash savings and its bouncing up & down every statement and we were discussing selling and putting in an ISA/mortgage instead.

PigletJohn Wed 23-Oct-13 17:29:22

here you are

PigletJohn Wed 23-Oct-13 17:26:41


The US registrars of the US company are in my case and you can get online access.

If you are a UK taxpayer and not a US taxpayer you want to be registered as "Form W-8BEN- Certified"

Otherwise you will have US Withholding tax deducted from your payments.

They can send you this form in the post or electronically. Once you are registered online you can self-certify online when it needs renewing.

If you are a US taxpayer then you have to pay US tax.

There are tax treaties which are supposed to give you double-taxation relief so you don't have to pay in both UK and US.

You will see from the form(s) you have to fill in that the US government has not really grasped the concept of ROW and thinks that everybody in every country has to pay US tax on everything, unless the US kindly grants them an exception. This is of course nonsense.

PigletJohn Wed 23-Oct-13 17:15:26

I own some US shares, but I am UK domiciled so I pay tax here. I have to fill in a US tax form from time to time to say I really am a UK citizen and really don't live in the US and really am not a US taxpayer.

They like to take a bit of US "witholding tax" off the dividends anyway. If I specify these on my UK tax return it is rebated under a double taxation treaty.

As the shares are registered in my name with my UK address, I can sell them through a UK dealer or stockbroker, and it is nothing to do with the US when I do.

If you are a UK taxpayer, youy have to pay UK tax on your income and capital gains. It is irrelevant if your shares are BG or Total or Esso. Your income or gains, your tax.

CogitoErgoSometimes Wed 23-Oct-13 16:27:09

I found this article which might help with your question. If he was selling the shares in the UK any profits (not the value, just the profit) would be liable for Capital Gains Tax. As the allowance is currently £10,900 and the shares are worth £5,000 +/- in total, that doesn't apply. In the US the profits are regarded as income and income tax would be due. What I don't know is if tax would be deducted at source or whether he'd have to declare it via a US tax return. Is he a registered US taxpayer?

Ooddoyouthinkyouare Wed 23-Oct-13 11:07:40

Dh holds some shares in the US. They're worth about $8000
How does tha tax system work ? Does he pay US tax or GB or both?
How much approx to pay? He's not higher rate or anything.

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