Tax on disposal of ETFs in UK as non-resident.

[Gaccha]

I’m keen to double-check with anyone here who has actually ‘disposed’ (i.e. sold up) of an ETF held in the UK as a non-resident. I am confident but one final cheap check is handy. 

 

I want to check the tax ramifications in the UK and Thailand.

 

For the UK:

 

[1]

(These screenshots are from HMRC or from PWC)

 

I am almost certain that a person non-resident (as defined in law) when they dispose of an ETF (as defined in law) are not subject to Capital Gains Tax and are not under any legal obligation to report to the HMRC. (Note that this contrasts with property, which is subject to CGT even if non-resident.)

 

[2]

 

Broadly speaking, a non-resident is somebody not resident for at least 5 tax years (less than this could be a ‘temporary non-resident’ and potentially subject to tax).

 

[3] [4]

 

 

As for Thailand:

 

The CGT is not payable so long as the sums are not remitted to Thailand that year.

 

[5]

 

This all surprises me because I can see little advantage for UK citizens in tax avoidance strategies besides secrecy unless they are covert tax evasion strategies. 

[partington]

The statement about  no CGT being due for share disposals for non-UK residents is correct.

 

No report is necessary to HMRC if you fulfil the residency definitions linked above and do not return to the UK within the time specified. I have disposed of EFTs in this way myself.

 

Note this  5 year absence and non-return period only applies to considerations of CGT.  The general definition of a non-resident for tax purposes does not incorporate this 5 year period and is worked out using the UK gov guidelines e.g.

https://www.tax.service.gov.uk/guidance/check-your-UK-residence-status/choose-tax-year