Non-US Investing • Does the cost basis for UK CGT reset when becoming a UK resident?

For investments owned before becoming a UK resident, do I owe UK capital gains tax on the entire gain from acquisition to disposal, or only on the portion of the gain that accrued during my period of UK residency? (Maybe another way of asking this is: Does the cost basis for UK capital gains tax reset when becoming a UK resident?)

In short, no (although the arcane 'non-dom' rules might impact, if you're in a position to use them). The usual advice is similar to that for anyone moving to the US; that is, evaluate whether it is better to sell, and perhaps re-purchase, to reset the basis before becoming a UK resident.

That aside, the UK 'non-dom' rules change next year, which might create a window for better tax efficiency. However, until this change, current rules apply.

Technical note: Changes to the taxation of non-UK domiciled individuals - GOV.UK

- Now in 2024 after I’ve spent 8 months in the UK, the ETFs are worth $650k and I want to liquidate. All are HMRC nonreporting.
- If I liquidate the account, do I owe UK capital gains tax on the entire gain ...

Just a note on the above. Did you really mean nonreporting? Assuming that wasn't a typo, for nonreporting funds you would owe UK income tax, typically a higher rate than UK capital gains tax.

Statistics: Posted by TedSwippet — Mon Jun 03, 2024 2:05 am — Replies 1 — Views 200

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