Tax and Oversees Investments

rakingpapers

Since interest rates have dropped I decided to invest some money with a company abroad that a friend recommended to me. Say I invested £2000 and it's up to £2500 and I wanted to bring back £2000, would this be all taxed or would it be considered as my original investment and not taxed? Would this have to be declared on a self-assement form?

Or would this be covered under capital gains tax?


Many thanks.

SeniorSam

You have to declare all gains. However, the terms of the investment are the important factor. If you would care to state how you are investing and on what basis, you may get more help.

Sam

rakingpapers

Hi SeniorSam,

Thanks for your response.

I’ve invested in a company that does forex trading with the funds that are deposited with them and they charge each time a trade is made. I made an initial deposit 2 years ago and made good gains so far and want to pull out my initial investment. How would I sort out the tax on this?

SeniorSam

Most investments will have produced documentation stating the tax position of your investment if it is left abroad or repatriated. Does the country in which the investment is made have any tax sheltering from UK? In any event, it may be that when funds are brought back to the UK, then part of the return will be attributed to growth or gain, but not usually 'interest'. Check your documentation, or send an e-mail to the company concerned and ask for tax information.

Sam