Capital Gains split citizen marriage

Here's a tricky one for you experts.  Obviously I'm going to ask a UK accountant at some point, but I'd love to know if any of you know.

The situation:

American Guy married to British Woman--living in U.S.  The stock is in account under American guy's name, with initial investment coming all from money made from guy's job.  He sells stock and makes a healthy capital gain.  Taxes obviously to be paid in the U.S.

Question:  Is the British woman responsible for any cap gains tax in UK?

Here's a tricky one for you experts.  Obviously I'm going to ask a UK accountant at some point, but I'd love to know if any of you know.

The situation:

American Guy married to British Woman--living in U.S.  The stock is in account under American guy's name, with initial investment coming all from money made from guy's job.  He sells stock and makes a healthy capital gain.  Taxes obviously to be paid in the U.S.

Question:  Is the British woman responsible for any cap gains tax in UK?

The situation: Capital Gains split citizen marriage.

Question: Which citizen gets the house after the split? Can Capital Gains be named as a third party provocateur? Are children involved?


The situation: ……I'd love to know if any of you know.

Question: Is there a prize?


The situation: American Guy married to British Woman--living in U.S.

Question: Guy living in US? Woman living in US? Both living in US?


The situation (assumed): British Woman living in US.

Question: Is the British woman responsible for any cap gains tax in UK?

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/LeavingOrComingIntoTheUK/DG_10027480
SCROLL DOWN TO: ‘If you're not resident’. Read the rest of the page to make certain British Woman is not resident.
You state the gain is from an account in American Guy’s name only. British Woman would be taxed in the UK as an individual (separately) even if she and American Guy were resident in the UK.  


The situation: He sells stock and makes a healthy capital gain. Obviously (he’s) going to ask a UK accountant…..

Question: Will he be asking voice/electronically, or will he be coming here first class on a cruise ship to ask personally (the real experts might be interested)?


And welcome to UK Yankee.

Thanks for the creative answer.

We both currently live in the U.S., however we're planning a move in July to the UK.

If I understand you correctly, you're saying that she's not responsible for tax on investment income even if the investment were in a joint account (her name and mine), as long as she's not residing in the UK.  Correct?

Does that change at all if we move in July, which I understand is only about 90 days into the tax year.  I read the line in the link you sent which basically says "no," but I swear I read on another Directgov page that if you're in the UK for over 183 days in a tax year that you could be taxed on the whole tax year.  Or did I dream that?

Hello Spoonjockey,

I’m pleased to see you back. We can disregard the original post and reply as this is a different situation. It’s my understanding that the UK does not tax the overseas income of a UK citizen if they are ‘not resident’ in the UK (according to rules) for the entire tax year (April 6 to April 5 of the following year). ‘Ordinarily resident’ and ‘Domiciled’ in the UK involve differing specific rules (remittance basis). You did not dream about the 183 day rule, and if you look near the top of the page linked above you will find comments on residency (Effect of residence,…). If you move to the UK in July of 2011, and stay for the rest of the UK tax year, then your UKC wife will be resident for the 2011/2012 UK tax year.

The income from a joint account is taxed on a 50/50 basis. Each partner will be responsible for half of the proceeds, irrespective of the amounts contributed by that partner. Contrary to your statement above, if the US account (stocks) was in joint names and the income is paid to a UK resident (who is also a UK citizen and taxed on the arising basis) in the tax year, then from the above link you will find a link to this page:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnSavingsAndInvestments/DG_10013299

If her name is not associated in any way with the account, then she will not be responsible for UK tax on any portion of the proceeds in the tax year, even if resident in the UK.

As always, I am not a professional advisor, and the above comments may be incorrect. To be certain of her obligations, it’s best to give HMRC a call.