Liquidating GIA/ISA and moving abroad - CGT

Oberfeldwebel

I messed up badly.

I wasn't paying attention on CGT allowance cuts during 2023 and 2024, because of that I never opened ISA account to protect me from CGT. All the time I held my shares in GIA and thought that CGT allowance was still £12.5k. I know, very stupid.
So in June 2024 I opened my ISA account, sold GIA assets, realized a gain around £10k, and bought similar number of stocks two days later in ISA account, but kept some shares in GIA as well.
This month I decided to move abroad, and now want to close my brokerage accounts. Closing GIA will trigger additional CGT. 
Do I have to pay CGT if I move abroad and don't come back in the next 5 years? 

Thanks for any advice

Mark_d

Yes.  You don't escape UK tax by going abroad.

poseidon1

Oberfeldwebel said:

I messed up badly.

I wasn't paying attention on CGT allowance cuts during 2023 and 2024, because of that I never opened ISA account to protect me from CGT. All the time I held my shares in GIA and thought that CGT allowance was still £12.5k. I know, very stupid.
So in June 2024 I opened my ISA account, sold GIA assets, realized a gain around £10k, and bought similar number of stocks two days later in ISA account, but kept some shares in GIA as well.
This month I decided to move abroad, and now want to close my brokerage accounts. Closing GIA will trigger additional CGT. 
Do I have to pay CGT if I move abroad and don't come back in the next 5 years? 

Thanks for any advice

The legal process in this situation is to retain your GIA, and not encash the investments until you have become non UK tax resident ( ie you sell after you become tax resident in your new country). All perfectly legal, and covered by HMRC on their CGT guidance. If you are due to move within the current tax year, suggest GIA sales deferred until well into 2025/26 tax year if not beyond.

However a couple of riders;

* If you return to the UK within 5 years, the gain you sheltered will become chargeable again.

* Depending on the country you are moving to and their rules for new emigrants, you could face a foreign tax liability on the gain ( or part thereof ) as well as potential income tax on any investment income received  in the interim, so researching that country's tax rules before departure would be prudent.

Finally, think carefully before shutting down your UK brokerage account. If moving to Continental Europe, they are not as blessed with the range and variety of cost effective investment platforms  and brokerages we have here in the UK.

Oberfeldwebel

Thanks Poseidon1 for you advice. 

The thing is, I already sold my assets, and bought them back in an ISA. So I realized a gain. 

TheSpectator

Oberfeldwebel said:

Thanks Poseidon1 for you advice. 

The thing is, I already sold my assets, and bought them back in an ISA. So I realized a gain. 

So quite simply, you need to pay the CGT.

poseidon1

Oberfeldwebel said:

Thanks Poseidon1 for you advice. 

The thing is, I already sold my assets, and bought them back in an ISA. So I realized a gain. 

Unfortunately, you have lost the opportunity to legally avoid CGT in your circumstances, but my comment may assist others  also planning a move away from the UK and currently sitting on sizeable unrealised portfolio gains

Of course even that legal CGT mitigation  strategy could disappear in this week's budget - we shall see.

Oberfeldwebel

Thank you for your advice.

May I ask what would be the best way to report CGT I'm due, if I'm planning to leave the UK in Dec 2024. Real-time CGT reporting service or Self-assessment report? 

Thanks