Capital gains tax when changing tax residence

darecki1

I have a question regarding stock market and share tax

in the event of a change in tax residency.

Around 2002, as a Polish resident, I purchased shares in a Polish company, which I still own today and on which I have made a large loss.

I have been a UK tax resident since 2004.

Can I offset this loss from the time I was a Polish resident in the UK to reduce my profit in the UK?

Johnnyboy11

It depends on your UK Residence and Domicile status, see HMRC guidance  here: https://www.gov.uk/government/publications/residence-domicile-and-remittance-basis-rules-uk-tax-liability/guidance-note-for-residence-domicile-and-the-remittance-basis-rdr1

DRS1

Couple of basic questions (which would apply if you were UK resident ordinarily resident and domiciled at all times)

1 Have you sold the shares?  You don't realise a loss until you sell.

2 Have you made a gain against which to set the loss?  If not what is the point of triggering the loss?  OK you can carry it forward until you have a capital gain to set it against.  But you can't set it against your income  (well not usually see How Can You Offset Investment Losses Against Income Tax?).

masonic

I don't think you'd be required to value your shares in 2004 and use that as your base cost rather than the actual acquisition cost if that's what you're asking.

darecki1

DRS1 said:

Couple of basic questions (which would apply if you were UK resident ordinarily resident and domiciled at all times)

1 Have you sold the shares?  You don't realise a loss until you sell.

2 Have you made a gain against which to set the loss?  If not what is the point of triggering the loss?  OK you can carry it forward until you have a capital gain to set it against

I am a tax resident and have domicile status in the UK
1. Not yet. The point is that I purchased them while resident in another country, and now I'm a UK resident. So if I sell them, will I settle this loss as a UK resident? This loss will reduce the profit I made on the shares I purchased while already a UK resident.

DRS1

If you are sure you are UK domiciled then you get taxed on your worldwide gains.  The remittance basis (see the link posted by @Johnnyboy11) (and the new FIG rules) would not apply.  So the fact that you were resident in Poland when you bought the shares and that the shares are Polish should not matter

But in case you are non domiciled or maybe have been treated as such in the past, I attach an article on the new FIG rules.  All seem very complicated to me but others on here will know more about them.  There is something in there about rebasing but hopefully that is not relevant to you.

Non-dom tax changes: the FIG regime, CGT and income tax - Saffery

darecki1

Thank you very much for your reply. The situation is now clear.