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. Remember there are significant CGT exemptions in the U.K. - you only get taxed on gains exceeding #10,000 per annum, so it could be a long while before he gets to offset the loss anyway.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?No; at least not in my experience. My proceeds from trading are all gross. 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.I think he can set his loss in the UK against any U.S. gains as long as he makes the trades in the same residency period. I don't think he can take the loss if he is UK resident when he sells, and US resident when he makes gains. However, you/he would really have to consult tax code as this area is fairly complex. If I were him, I'd take the loss when I was a US resident and offset against US income. The CGT provisions in the UK are far more generous than the US ones, and I think he'll definitely get more benefit offsetting the loss against income.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra