uk tax laws on forex

This is a discussion on uk tax laws on forex within the Forex forums, part of the Markets category; Originally Posted by bootsyjam Impossible to answer that Tia-depends on which country you're in. Even if you tell us, we ...

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Old Mar 26, 2013, 4:57pm   #91
 
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Re: uk tax laws on forex

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Originally Posted by bootsyjam View Post
Impossible to answer that Tia-depends on which country you're in. Even if you tell us, we most likely won't have a clue as it's doubtful anyone here will be experts in tax law in your country. Hell there's enough arguments amongst British people r.e. UK tax law so pretty sure you'll need to do some research yourself and ring up your own tax people/get advice r.e. your specific laws in your country.

I am form Bulgaria, there is no CGT in my country but not sure if i have to pay when my account is with a UK broker.
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Old Mar 26, 2013, 5:11pm   #92
Joined Sep 2006
Re: uk tax laws on forex

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Originally Posted by dich.fx View Post
I am form Bulgaria, there is no CGT in my country but not sure if i have to pay when my account is with a UK broker.
Well then ring your tax office in Bulgaria/use an accountant/use Bulgarian sites and google and find out for yourself!
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Old Mar 26, 2013, 6:22pm   #93
Joined May 2001
Re: uk tax laws on forex

You will not have to pay any tax in the UK. Tax is paid, in most cases, based on the place where you live and not where the account is held.
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Old Mar 26, 2013, 6:25pm   #94
Joined Jun 2012
Re: uk tax laws on forex

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Originally Posted by dich.fx View Post
I am form Bulgaria, there is no CGT in my country but not sure if i have to pay when my account is with a UK broker.
You are not liable to UK CGT as a nonresident.

HM Revenue & Customs: Tax on UK income or capital gains for non-UK residents

You should probably make sure that Bulgaria don't consider you open to income tax on your earnings as you're 'trading' contracts rather than holding and selling underlying capital assets.
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Old Apr 6, 2013, 11:22am   #95
 
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Re: uk tax laws on forex

"Q2. I carry on a trade through a branch or agency in the UK, but I am not resident/not ordinarily resident, am I liable to capital gains tax when I dispose of assets held for the purpose of this trade?

A. Yes, you are liable to capital gains tax on these disposals."

How do u guys interpret this?


Tia
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Old Apr 6, 2013, 11:50am   #96
Joined Jun 2012
Re: uk tax laws on forex

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Originally Posted by dich.fx View Post
"Q2. I carry on a trade through a branch or agency in the UK, but I am not resident/not ordinarily resident, am I liable to capital gains tax when I dispose of assets held for the purpose of this trade?

A. Yes, you are liable to capital gains tax on these disposals."

How do u guys interpret this?


Tia
This means if you have a permanent establishment in the UK, such as an office space. It's tax treaty decision and wouldn't effect you.

Are you actually disposing of any assets anyway...? What you're trading has no value for the purpose of meeting liabilities so it's dubious whether what you have is an asset or not by using a UK CFD broker or spread better, especially if they are not market orders.
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Old Apr 6, 2013, 1:35pm   #97
 
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Re: uk tax laws on forex

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Originally Posted by random12345 View Post
This means if you have a permanent establishment in the UK, such as an office space. It's tax treaty decision and wouldn't effect you.

Are you actually disposing of any assets anyway...? What you're trading has no value for the purpose of meeting liabilities so it's dubious whether what you have is an asset or not by using a UK CFD broker or spread better, especially if they are not market orders.
Thanks. The only reason i raised the subject is the answer i got from CMC:

"Dear Mr ,

You will be liable for for capital gains tax but we advise you contact a tax specialist regarding this issue, as we are unable to advise you on this subject.

Kind regards

New Accounts Team
-------------------------------


Subject:
RE: CMC markets
________________________________________



Last question. As a person who does not have a UK citizenship and does not live in the UK am I liable to capital gains tax?

Regards "
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Old Apr 6, 2013, 5:43pm   #98
Joined Jun 2012
Re: uk tax laws on forex

Quote:
Originally Posted by dich.fx View Post
Thanks. The only reason i raised the subject is the answer i got from CMC:

"Dear Mr ,

You will be liable for for capital gains tax but we advise you contact a tax specialist regarding this issue, as we are unable to advise you on this subject.

Kind regards

New Accounts Team
-------------------------------


Subject:
RE: CMC markets
________________________________________



Last question. As a person who does not have a UK citizenship and does not live in the UK am I liable to capital gains tax?

Regards "
I feel I should charge you for this

http://www.hmrc.gov.uk/taxtreaties/i...ulgaria-uk.pdf

Article 12 (4) applies to you, immovable property refers to buildings etc so does not apply. It clearly states gains are taxable only in Bulgaria (where you are resident) and as already noted the UK would not seek to tax you domestically anyway because you have no PE and are not resident.
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