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Topic: Capital Gains and foreign tax credits  (Read 252 times)

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Capital Gains and foreign tax credits
« on: October 30, 2020, 12:35:51 PM »
As a USC and long term UK resident -   If I sell a stock in a US brokerage account and make a capital gain who do I pay the tax on this gain to so I can then  claim a foreign tax credit to the other.  So guess the question is who is first in line to tax this gain? 


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Re: Capital Gains and foreign tax credits
« Reply #1 on: October 30, 2020, 12:47:46 PM »
I believe that the UK is the primary taxing authority here, so you would pay taxes in both countries, claiming a foreign tax credit on your US tax return. When completing the US return you would use form 1116 to claim the credit, marking the box “Certain income re-sourced by treaty”.
Dual USC/UKC living in the UK since May 2016


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Re: Capital Gains and foreign tax credits
« Reply #2 on: October 31, 2020, 09:43:11 AM »
As a USC and long term UK resident -   If I sell a stock in a US brokerage account and make a capital gain who do I pay the tax on this gain to so I can then  claim a foreign tax credit to the other.  So guess the question is who is first in line to tax this gain? 
The UK has the primary taxing right.  Because of UK share pooling,  exchange rate fluctuations and the UKs CGT exemption there is often no element of double taxation. 


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