Tax question (on investments). Help please!

skillboy

Hi All

I am thinking of opening an account at Hargreaves Landsdown in order to buy my first fund.

I was planning on opening the account either in my own name only or in joint names (with my wife). I am a UK national living in Thailand and my wife is a Thai national.

If I was lucky enough in the future to sell the fund at a profit, would there be CGT savings if I opened the account in joint names, rather than just in my name?

If I opened the account only in my own name (not in an ISA) then I guess I would have my tax free annual allowance to use before I paid CGT on profits.

If I opened it up in joint names, do you know if my wife would have to pay CGT on her 50% of the profits?

Simply put, should I open this HL account in my name or joint names?

I tried to look this info up online already but the info seems hard to find.

Any thoughts? Feedback greatly appreciated.

Thanks

Linton

UK CGT is only paid if your net profits from selling shares/funds are greater than £10900 (2013-2014 figure) in any one tax year. I would guess you are a long way from that and can normally avoid tax simply by selling over several years. One thing you would need to do is to keep records of buys and sells for 7 years for the very unlikely possibility that the HMRC wants to know. Though as you live in Thailand would you pay UK tax anyway or would you be subject to Thai tax, about which most of us know nothing.

Dividends can be taxed as well, but only if you are a higher rate tax payer.

Life is easier if you invest within an Stocks&Shares ISA which avoids any tax hassles. As a Thai resident I guess you cant have an ISA.

I dont know whether you can have a joint dealing account - Ive never heard of one

pip895

Linton wrote: »

UK CGT is only paid if your net

I dont know whether you can have a joint dealing account - Ive never heard of one

me neither - you could be better having two and then linking them - if you became/are able to hold an isa this would make that possible to.

Freecall

Some providers (ii for example) allow you to link your accounts and only pay one set of charges if that helps.

skillboy

Thanks for your prompt and valuable feedback as always!

DonM

It depends on your circumstances. If you are deemed a UK resident then you'll be liable to UK tax, if not it will be Thai taxes. Unlike the US system, the likelihood is you won't need to fill in a tax return or be liable for UK CGT/income tax.

If that's the case there could be tax efficient vehicles you could use - an ISA won't be an option as you don't (assumption) pay UK taxes - that could be equally lucrative.

barak

I've no idea what HL's rules are, but you certainly can have joint holdings in both shares and funds. The conditions for one party to operate a dealing account online [i.e. without the signatures of all - normally up maximum of four - holders for every deal] would at least require a signed authority from all other holders.

As DonM said, if you are permanently resident abroad the tax liabilities will surely depend on local tax laws.

skillboy

If my wife who is Thai and living in Thailand buys a fund through HL and later sells it at a profit, does she have to pay CGT on any profits?

Or does she also get a "tax free" allowance of £10,900 like I do?

grizzly1911

barak wrote: »

I've no idea what HL's rules are, but you certainly can have joint holdings in both shares and funds. The conditions for one party to operate a dealing account online [i.e. without the signatures of all - normally up maximum of four - holders for every deal] would at least require a signed authority from all other holders.

Cavendish on line operate joint account facilities as you suggest for non ISA facilities.If the "nominated" individual who operates the joint facility has personal funds such as an ISA these can also be accessed through the same login.

Capital Gains Tax

"In general you will not be liable to pay tax on capital gains if you are not resident in the UK but there are exceptions. Read more in the section 'Tax on capital gains from assets in the UK' later in this guide."

http://www.hmrc.gov.uk/international/tax-incomegains.htm

skillboy

Thanks a lot.