Capital Gains Tax on Remitted Money

I'm a UK non-dom and I'm thinking of  buying a flat so I need to sell some US mutual funds to get the down payment. I sold and repurchased my US mutual funds well before I moved to the UK and I paid the US capital gains tax bill last year, so I don't expect there to be a big CG in the funds, actually its probably a loss...........

My question is are there any special rules for CGT for UK non-doms when the money is remitted. I was figuring that I'd pay the CGT just like any other UK resident ie take off the tax free allowance (#9k this year) add anything over that onto my income and cough up 10, 20 or 40% depending in the amount I end up earning or just the 18% flat rate when that comes in. I also figured I'd get credit for the 15% US CGT I'm going to pay. Is this correct?

1.To figure out the gain remitted if you claim the remittance basis you gross up for the US tax payable (15%) because you are deemed to bring in gains net of foreign tax.

2. If these are not approved distributor funds you will owe UK tax on gains at your marginal UK rate (no annual CGT exemption)

3. Sure, you get to claim credit for US taxes payable.

4. Even after today's budget there is no certainty on the rules for credit after 5 April 2008.

5. The UK gives no relief for losses if you claim the remittance basis.

6. Don't forget to convert to Sterling using spot rates on purchases/sales.

1.To figure out the gain remitted if you claim the remittance basis you gross up for the US tax payable (15%) because you are deemed to bring in gains net of foreign tax.

2. If these are not approved distributor funds you will owe UK tax on gains at your marginal UK rate (no annual CGT exemption)

3. Sure, you get to claim credit for US taxes payable.

4. Even after today's budget there is no certainty on the rules for credit after 5 April 2008.

5. The UK gives no relief for losses if you claim the remittance basis.

6. Don't forget to convert to Sterling using spot rates on purchases/sales.

What's an "approved distributor fund"? I invest in US mutual funds offered by T Row Price, do I get the UK tax free allowance on CG from those that I remit to the UK?

Any non UK fund is subject to the offshore income gain rules.  If you are not familiar with these this paper may help:

http://www.hm-treasury.gov.uk/media/2/E/pbr_csr07_offshore402.pdf

Guya, thanks for the link, it's not going to be on the NY Times bestseller list any time
soon, it reads like a classic bit of governmentses. Do I understand right that any gain in a non-reporting foreign fund is taxed as income in the UK so no CGT free allowance?

Obviously US funds have strict reporting rules, Sarbanes etc, but the issue is probably that the UK does not recognize them. I'll ask T Rowe Price about this, but I bet they don't know anything about being an approved or reporting fund........ Can I do anything on my end of stuff ie providing accounting info to the UK tax man for my mutual funds

You could apply for the fund to be a distributor fund under the current rules; whether you'd have access to all of the data HMRC would want is another question.

Once we move to the new reporting fund status this will no longer be possible.

You could apply for the fund to be a distributor fund under the current rules; whether you'd have access to all of the data HMRC would want is another question.

Once we move to the new reporting fund status this will no longer be possible.

So are there any US based funds that qualify as UK reporting funds? Do the big companies like T Rowe Price, Fidelity, Vanguard, iShares etc have anything that might work

I have not heard any rumours that any domestic US funds would be interested in the costs of applying for Reporting status in the UK given that they are designed for sale in their home markets.

I can't see why any of them would actually care about the UK as they don't sell US domestic funds here.

I have not heard any rumours that any domestic US funds would be interested in the costs of applying for Reporting status in the UK given that they are designed for sale in their home markets.

I can't see why any of them would actually care about the UK as they don't sell US domestic funds here.
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That's what I expected as the US mutual funds I have talked to all emphasize that you have to be resident in the US or a US citizen to buy them, so there's no reason to deal with other jurisdictions. I bet there's actually some law against it. Looks like US funds are the best option for US citizens or buying individual stocks in the UK.

I have friends who tell me to do an ISA, its annoying that they aren't a shelter from US tax. I'm coming to realize that as a US citizen abroad many of the schemes put in place to encourage the small investor aren't available to me.