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Subject:  Withholding tax UK /US residence Date:  12/20/2000  11:39 AM
Author:  chrisonseax Number:  43162 of 127637

Can anyone please help.

I post for on behalf of someone who owns some US shares -now at a large loss.

He is currently resident in the UK, but is coming to work in the US in mid Jan--probably for a couple of years. If he sells his shares now he would realise a capital loss which he could carry forward against any gains in the UK for up to seven years. No tax is deducted on disposal in the UK. He would then buy them back in the US as he expects the shares to recover.

If he sells in the US he believes that witholding tax of 31% is deducted on the proceeds immediately irrespecive of gain or loss and he then has the hassle and delay of claiming back. Is this so?

Also he doesnt know whether or not a capital loss in the UK can be set aginst any gain in the US rather than using it in the UK when (or if) he returns.

Many thanks


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