Dealing in international shares via selftrade

warrior06

Hi,

I am a French guy living in London, with a revenue in GBP, and I used to invest in shares in France (CAC40) via my euro account.

I am running out of euros and would like to use my GBP here to invest in French shares (I don't want to transfer my GBP to my euro account as the exchange rate is too bad at present)

Therefore, I looked at selftrade which looks ok to me and have a few questions

- Would they charge me more for dealing with French shares? (ie more than 12.5 pounds)
- Is the order on a share within the CAC immediate? ie if I give the order at 3pm, will it be executed in the next minute by 3.01pm or is there a delay because it comes from abroad?
- What do you think of their overall services?
- I guess I'm exposed to the exchange rate EUR/GBP here? ie if the euro shares go up by 5% but the EUR/GBP goes down by 5% that cancels my gain right?
- Finally, I don't expect more than 5,000 GBP of gain a year so no need of share ISA as the 5k of capital gains are tax free right (given that I don't brach the threshold)?

Many thanks for your help!!


W.

Cook_County

On the subject of tax - if you will be claiming th remittance basis from 6 April 2008 (for example if you are not ordinarily resident) there is zero annual capital gains exemption so you would owe UK tax on every pound of gain.

I note you are domiciled in France (using the British meaning of domicile, not the French). Are you ordinarily resident in the UK?

warrior06

Sorry if I have been unclear but most of my assets are in the UK, I have been leaving in London for 3 years, with a UK contract. So I would be treated the same way as a British guy I think...

Cook_County

So can I take it that you are resident and ordinarily resident in the UK but remain non-UK domiciled?

Have you claimed both th non-dom status and remittance basis on past tax returns and therefore not reported French source income & gains on past UK returns or did you remit these to the UK?

As a non-dom you are never treated the same a UK domiciliary both during lifetime and in respect of inheritance tax on death. This is a common misconception.

warrior06

Well I'd have to check th exact definition but why wouldn't I be UK domicield?

I have never completed any tax return in 3 years, I have no revenues in France et again, nothing link me with France apart the fact that I am french and I lived overthere until 3 years ago...

Any other ideas on the other questions I raised above?

Thx!

Cook_County

I have never met anyone (in over 25 years advising on domicile) who has acquired domicile within the UK within such a short period as 3 years. I know of no precedent in case law, either.

I am certain nonetheless that you are resident in the UK. I do not know from what you have said if you are ordinarily resident in the UK.

If you have indeed become domiciled here - because you have decided to stay here for ever (or you have remitted income or gains from France to the UK) and you have failed to report your French investments on UK tax returns then you are evading UK tax.

Your first step is therefore to file your outstanding UK tax returns so you know how much money you have left after paying UK tax on your French income & gains.

Remember, I said previously to use the English law definition of domicile as being the place you have settled permanently; not the French definition which is quite different and is merely one's customary place of residence.

warrior06

OK, thanks for your detailed answer. So in the worse case scenario I wouldn't be exampt from tax on the capital gain up to xk GBP right? Shall I open a share ISA then?

What about the other questions?

Thanks very much

purch

like to use my GBP here to invest in French shares

You will be buying the shares in EUR, so you will be converting your GBP to EUR whichever way you do it.