IB - which jurisdiction?

This is a discussion on IB - which jurisdiction? within the Home Trader forums, part of the Trading Career category; I'm tax resident in the UK, but am non-domiciled here and so am not required to pay tax on gains ...

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Old Jul 17, 2007, 11:03pm   #1
 
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IB - which jurisdiction?

I'm tax resident in the UK, but am non-domiciled here and so am not required to pay tax on gains outside of the UK (subject to remittance).

With an Interactive Brokers account, even if it's opened in the UK I'm required to fill in US declarations (W8-BEN), so are any transactions in that account considered to be in the US or in the UK? Are the funds in this account stored in the UK (and so have been remitted in the UK)?

Alternatively, how difficult is it for a UK resident to open and fund a direct US account rather than a .co.uk one?

Cheers,

Shano
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Old Jul 18, 2007, 7:11am   #2
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My understanding is that the W8-BEN form is to prevent you being taxed by the US on any gains that you make. I expect that you will have to declare your profits to wherever you are considered domiciled.


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Old Jul 18, 2007, 8:12am   #3
 
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shano started this thread Thanks Paul, that's my understanding too with regards to the US end, but I'm now trying to determine whether or not and for how much I get taxed in the UK.

I'm a Kiwi, but am tax-resident in the UK. As a non-domicile I only need to declare to the Revenue any gains earned overseas to the extent that they are remitted back to the UK. They're strange laws, and as far as I can tell only the UK and Ireland have them, but in effect it means that any gains I make overseas may not be taxable in any jurisdiction as I am not required to furnish a NZ tax return because I'm not tax-resident there.

However, if the IB account is situated here in the UK then by default all gains appear to have been transmitted here and so I'll be liable in the normal way to all gains. It's this bit I'd like confirmed if possible.

Shano
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Old Apr 11, 2008, 12:50pm   #4
 
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Dunno if this helps?

From IBs FAQ on Tax:

Tax Information and Reporting

As a resident of the UK, for my tax purposes solely, can I elect to open an account with IB US directly and bypass opening an account through IBUK?
If you are a UK resident you can only open an account with IBUK. Although, your client money will always be held by Interactive Brokers LLC, in the US.

does this mean that your IB account is effectively a black box and any deposits equate to capital and withdrawals equate to capital gain (or cash as a result of)?

Matt
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Old Apr 11, 2008, 1:32pm   #5
 
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Quote:
Originally Posted by shano View Post
. . .
With an Interactive Brokers account, even if it's opened in the UK I'm required to fill in US declarations (W8-BEN)
. . .
One of two reasons why I wouldn't open an a/c with them.
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Old Sep 2, 2008, 11:40am   #6
 
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Quote:
Originally Posted by shano View Post
I'm tax resident in the UK, but am non-domiciled here and so am not required to pay tax on gains outside of the UK (subject to remittance).

With an Interactive Brokers account, even if it's opened in the UK I'm required to fill in US declarations (W8-BEN), so are any transactions in that account considered to be in the US or in the UK? Are the funds in this account stored in the UK (and so have been remitted in the UK)?

Alternatively, how difficult is it for a UK resident to open and fund a direct US account rather than a .co.uk one?

Cheers,

Shano
I am exactly in the same situation as Shano. Has anyone found the answer?

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Old Sep 2, 2008, 12:59pm   #7
 
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Better still open your account based on IB's Hong Kong office if you can. You never know when laws will change so the better your separation the safer you'll be.
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Old Sep 3, 2008, 11:12am   #8
 
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Better still open your account based on IB's Hong Kong office if you can. You never know when laws will change so the better your separation the safer you'll be.
Hi nine,

That sounds like a very interesting possibility. However, I'm not sure whether I'm able to open an account when IB Hong Kong, since, for instance, all UK residents are required to open their accounts with IB UK.

Do you know a web page to open an account with the Hong Kong branch?

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Old Nov 9, 2008, 11:07am   #9
 
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so if your money is held in the USA and you just stick your profits in a US bank account , how can the UK tax man ever get his hands on it ?
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Old Dec 2, 2008, 5:30pm   #10
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Tax treaties
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Old Dec 3, 2008, 2:13pm   #11
 
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Shano, since you don't have to do a tax return for the NZ state, why don't you open an IB account using your NZ home address?
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Old Dec 3, 2008, 3:11pm   #12
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Originally Posted by ahardy66 View Post
Shano, since you don't have to do a tax return for the NZ state, why don't you open an IB account using your NZ home address?
Tax Treaties in force - New Zealand - UK

* 2008 New Zealand-UK Protocol (PDF 42K)
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Old Dec 4, 2008, 2:18pm   #13
 
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Well in that case of course you'll want to stick to the straight and narrow and not suggest that you're going to do anything that somebody in the HMRC's internet monitoring dept might want to file against your name.
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Old Jan 18, 2013, 6:52pm   #14
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Re: Dunno if this helps?

Quote:
Originally Posted by innovation View Post
From IBs FAQ on Tax:

Tax Information and Reporting

As a resident of the UK, for my tax purposes solely, can I elect to open an account with IB US directly and bypass opening an account through IBUK?
If you are a UK resident you can only open an account with IBUK. Although, your client money will always be held by Interactive Brokers LLC, in the US.

does this mean that your IB account is effectively a black box and any deposits equate to capital and withdrawals equate to capital gain (or cash as a result of)?

Matt
So does anybody know if we can trade with a UK Interactive Brokers account while being non-dom and not paying any taxes if we don't remit that money? Does it have to do with the products we trade (I only trade US products)?
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Old Feb 19, 2018, 10:11pm   #15
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from this discussion:
https://www.bogleheads.org/forum/viewtopic.php?t=196465
and specifically this document:
https://gdcdyn.interactivebrokers.co...agreement.html
it seems that all IB customer assets are held by IB LLC which is located in the US (or other locations outside the UK).
My impression is that this would include even UK stocks as custody of ALL assets is by the US based IB LLC (again, according to the above document).
Can someone else confirm this?
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