UK Tax On Guernsey Portfolio?

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UK Tax On Guernsey Portfolio?

I have a query regarding my tax situation. I am British and have been working in Austria for the past 18 months or so. I have quite a large sum invested through an asset manager in Guernsey – in investment trusts, exchange traded funds, real estate investment trusts etc. Could you possibly tell me if there are any UK tax liabilities on these investments?

Adam Thompson, tax manager at expat finance specialists The Fry Group, answered this question.

“The Fry Group can only offer UK tax advice, and we would advise that you seek local advice in Austria as well to ensure that you are familiar with your position and obligations there.

“From a UK point of view, your exposure to tax would depend on your residence and domicile position. If you would like for us to review either or both of these, please let me know.

“If you are non-UK resident, then you are only liable to UK income tax on UK source income. This would however include UK-based shareholdings even if held through an offshore portfolio. While you remain non-resident for UK tax purposes there will be no capital gains tax on gains realised within your investment portfolio. However, depending on how long you remain non-resident for UK tax purposes, you may be liable to a charge to capital gains tax on your return for assets sold while non-resident.

“If you would like us to provide specific advice tailored to your own circumstances, we would need some more detailed information from you.”

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.