Hi everyone, I've been reading the many very interesting threads in this section but haven't found an answer to my question:
I am resident (but not domiciled) in the UK. I have some offshore cash and want to use it to start an automated day-trading strategy.
If I use an offshore broker for this, will HMRC view the trading income as originating offshore or from within the UK?
I have found conflicting opinions on various web pages:
- some offshore brokers claim the income would be offshore, because their servers are located offshore and "that's where the orders originate and that's what matters"...
- and some individuals suggesting that the income would be UK-derived, because the strategy would be managed from within the UK (the trading decisions would be made in the UK by a computer program developed in the UK), and the fact that the trading instructions are sent to - and executed by - an offshore broker is irrelevant...
Thank you in advance for any help.
-spaceCat
I am resident (but not domiciled) in the UK. I have some offshore cash and want to use it to start an automated day-trading strategy.
If I use an offshore broker for this, will HMRC view the trading income as originating offshore or from within the UK?
I have found conflicting opinions on various web pages:
- some offshore brokers claim the income would be offshore, because their servers are located offshore and "that's where the orders originate and that's what matters"...
- and some individuals suggesting that the income would be UK-derived, because the strategy would be managed from within the UK (the trading decisions would be made in the UK by a computer program developed in the UK), and the fact that the trading instructions are sent to - and executed by - an offshore broker is irrelevant...
Thank you in advance for any help.
-spaceCat