Dealing my shares as a non uk resident

jackthehat

Hi new to the forum and looking for some help.

I left the uk for Oz ten years ago. I got left shares by my uncle and they are held by Threadneedle who the shares are for too.They have my Crest cert etc.

My problem is as a non uk resident I cant open an on-line share dealing account to move them into, so i can deal 24/7 and be in proper control of them. At the moment I can only send a letter authorising sale which takes a week or so. Obviously in a crash or alike the value could have plummeted by then so I need full control.

I cant open a share dealing account such as Halifax or RBS share dealing because i'm not classed as a UK resident. I'm a citizen of the UK, just not resident anymore. Does anyone know how I can take control of them legally ? Are there brokers maybe that allow me to share deal without residency, either on-line or by phone?

Thanks in advance

Jack

bowlhead99

jackthehat wrote: »

I cant open a share dealing account such as Halifax or RBS share dealing because i'm not classed as a UK resident. I'm a citizen of the UK, just not resident anymore. Does anyone know how I can take control of them legally ? Are there brokers maybe that allow me to share deal without residency, either on-line or by phone?

TD Direct are well known and reputable and allow non-residents to open an account with the same features as their normal trading account (see 'overseas resident trading account' application linked from here http://www.tddirectinvesting.co.uk/help/faqquestions/how-do-i-open-an-account/)

I got left shares by my uncle

To be honest, while it's nice to have acquired shares that were originally bought by someone else, it doesn't seem likely that the holding is exactly what you would buy with your own money. World equity markets are valued at USD 60-70 trillion dollars representing many thousands of companies and funds. Your uncle was presumably older than you, likely had a different attitude to risk, was living in a different country and with a different investment goals/objectives.

So to me it seems highly unlikely that a holding of shares or funds that you didn't even pick yourself, represents an ideal balance.

So, rather than move these shares to a different UK broker, one option would be to sell them. You then have cash that can be invested in a different portfolio of UK, Australian - or perhaps most sensibly, global - shares or funds, and this is likely easier done through a broker or investment business in Oz where you live and which is open during your waking hours with a local phone number (though of course I recognise that most people do things online these days).

pip895

Do you have plans to return to the UK? Surely if not then it would better to open something local to you. If you are planning to return, then there may be merit in opening something like the TD Direct account.

jackthehat

Hi first of all thanks for the replies. I've been away for a month and for some reason my phone didn't notify me of responses.

I'm staying in Australia for good.

Thanks for the advice I'm now trying to decide between TTDI and SVS securities. Do you know anything about the latter by any chance?

The shares are threadneedle and they were worth 50k GBP at the time and now they are worth 80k. Would anyone know about capital gains on these? Am I right on assuming I get charged gains on the 30k profit only? I want to sell them but want to avoid the tax obviously.
What is the threshold for avoiding paying it?

Again, many thanks for your time.

bigadaj

You may be due tax in oz on it, though I presume there is a double taxation agreement so you shouldn't have to pay twice.

From a uk perspective then if you were uk resident you have a tax free allowance of £10k, so you are only taxed on the gain minus this, in your case around £20k. Actual tax on this is 18% if you are standard rate taxpayer or 28% if a higher rate taxpayer, so probably around £5-6k.

Jonbvn

bigadaj wrote: »

You may be due tax in oz on it, though I presume there is a double taxation agreement so you shouldn't have to pay twice.

From a uk perspective then if you were uk resident you have a tax free allowance of £10k, so you are only taxed on the gain minus this, in your case around £20k. Actual tax on this is 18% if you are standard rate taxpayer or 28% if a higher rate taxpayer, so probably around £5-6k.

Given that the OP has been NR for an extended period, and he would have to sell them now to realise the gain, he will unlikely have to pay any CGT in the UK. However, there will likely be some tax due in Oz.

jackthehat

Thanks guys.So there's a conflict in answers there ?

Incidentally i've been told if I sell in smaller amounts ie 10k per year or something, that i'm exempt from CGT ? Is that right?

bigadaj

Jonbvn wrote: »

Given that the OP has been NR for an extended period, and he would have to sell them now to realise the gain, he will unlikely have to pay any CGT in the UK. However, there will likely be some tax due in Oz.

I'm no tax expert but not living in a country doesn't always mean that you're not subject to tax in that jurisdiction, and you may be subject to tax in two countries, just in many cases one ste of taxes is off set table against the other.

Just look at the yanks subject to tax anywhere in the world.

bigadaj

jackthehat wrote: »

Thanks guys.So there's a conflict in answers there ?

Incidentally i've been told if I sell in smaller amounts ie 10k per year or something, that i'm exempt from CGT ? Is that right?

Yes, if you sell in smaller amounts then that would be included within your tax free allowance, currently a bit over ten grand a year in sterling.

Jonbvn

bigadaj wrote: »

I'm no tax expert but not living in a country doesn't always mean that you're not subject to tax in that jurisdiction, and you may be subject to tax in two countries, just in many cases one ste of taxes is off set table against the other.

Just look at the yanks subject to tax anywhere in the world.

I'm no tax expert either. However, the USA tax situation is the exception rather than the rule.

Jonbvn

jackthehat wrote: »

Thanks guys.So there's a conflict in answers there ?

Incidentally i've been told if I sell in smaller amounts ie 10k per year or something, that i'm exempt from CGT ? Is that right?

Check with HMRC.

http://www.hmrc.gov.uk/rates/cgt.htm