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Topic: UK Domiciled - Tax on USA ETFs/Mutual Funds  (Read 1699 times)

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UK Domiciled - Tax on USA ETFs/Mutual Funds
« on: June 17, 2010, 12:12:30 AM »
Does anyone have an up-to-date list of foreign funds that carry "reporting/distributor" status with UK HMRC? The list on the HMRC website has almost none of the commonly used US ETFs e.g Vanguard USA ETFs such as I have.

In fact the HMRC website's spreadsheet is out-of-date. Have HMRC said they will update this?

My USA portfolio includes mostly USA ETFs from Vanguard e.g VEU, VSS, VTI, VNQ, VBR - also TIP and BND. Is it true that on my UK tax return (I will soon be taxed as a domicile on a worldwide arising basis) that my ETFs dividends and cap gains will be taxed at UK income tax rates?

Perhaps more importantly, is it true that I won't be able to do "tax loss harvesting" by offsetting USA ETF cap gain losses against USA ETF cap gains to reduce taxes due in UK?

In the USA are any tax-wrapper structures available for me to avoid this? I am single/no kids and retired and will need to use these funds in UK at some stage.

Any other ways to avoid this? Thanks.


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