Withdrawing money from a formerly Royal Skandia account

soilsaregood

I wish to ask whether if as a UK resident would I pay UK CGT or income Tax on formerly Royal Skandia managed savings account if the released money went directly to an overseas account without e tering the UK.

wmb194

soilsaregood said:

I wish to ask whether if as a UK resident would I pay UK CGT or income Tax on formerly Royal Skandia managed savings account if the released money went directly to an overseas account without e tering the UK.

If you're resident in the UK then UK taxation applies. It doesn't matter where you send it or even if the entire transaction took place abroad. 

soilsaregood

This should probably be explained to clients at the time managed saving accounts are sold.

dunstonh

It's also worth noting that Skandia is required to inform HMRC of this transaction.   Typically, if you fail to deal with it via self-assessment, they chase you for it in about 3 years' time, plus a penalty.

masonic

soilsaregood said:

This should probably be explained to clients at the time managed saving accounts are sold.

Most firms do not offer tax advice and will direct you to consult with your accountant if anything is unclear.

wmb194

soilsaregood said:

This should probably be explained to clients at the time managed saving accounts are sold.

Why were you under the impression it would be or could be exempt? Which account/product have you invested in?

dunstonh

masonic said:

soilsaregood said:

This should probably be explained to clients at the time managed saving accounts are sold.

Most firms do not offer tax advice and will direct you to consult with your accountant if anything is unclear.

IFAs have the authorisations and remit to provide tax advances on investment products. Indeed, accountants often refer to IFAs in these areas.   However, with ex-pats, the Royal skandia product was often sold by sales agents and not IFAs.

This should probably be explained to clients at the time managed saving accounts are sold.

Its not a savings account.   Ex these were sold to expats, explaining the position if you are resident in the UK is probably an unlikely conversation.    Each country of the world will have its own rules.