I am UK resident, but used to work in US long time back, so still have investments there. I am non domiciled but cannot afford to pay 30 grand, so have to be UK-taxed on arising basis.
I hold Vanguard mutual fund investments in the US with the money I earned while in US. These mutual funds work the same way as index trackers do here in the UK. They dont do anything fancy or secretive, such as "rolling up the income" and passing it off as capital gains etc. As far as I know, they distribute ALL their income. Why is it that UK HMRC treats this fund as non-distributor-status ? Should Vanguard do something special to apply to UK HMRC ? Alternatively, as an investor, can I write to HMRC and openly tell them : "Look, I own these funds and they distribute all their income. I am certainly not passing off income as capital. So please, please tax me income tax rate on pure income, dividend tax rate on dividend distributions and CGT rate upon disposal".
Okay, lets say the offshore mutual fund / ETF does not have distributor status. The gains upon disposal of this asset would be treated as income not CGT from UK standpoint.
If the gain is treated as income, how is the loss treated ?
Lets say I have 2 offshore non-distributor-status funds, I sell one for a profit of $100 and the other for a loss of $100, cancelling each other out. Do I owe any UK tax ?
Or, lets say I sell such a fund at a loss for $100 and I remit $100 worth of bank interest (which is treated as income) to UK which I had earned during the non-dom days. Again, can I claim "loss of income" and not have to pay tax on the remittance ?
Surely if gain is treated as income, loss should be treated as "loss of income" ?
