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I am a US citizen working in the UK, earning £. With ISA season upon us, I've researched various FTSE-All Share Trackers and would like to invest in one. I've found out I can invest in a tracker directly with the provider (Virgin, HSBC, etc) without opening a brokerage account, good news.

I am wondering, however, about the current and future tax implications:

1) Any gains I receive in the UK should be taxed at source; I've applied for the US tax exemption on earnings, which should operate until I return to the US in a few years. I'm assuming, however, that captial gains could bring me over the exemption limitiation -- does this mean I could be taxed both in the UK and US on the same income?

2) Once I return to the US and am no longer working in the UK (imagine 4 years down the road), does anyone know what the future tax implications are? Would I continue to pay tax on gains to the UK government as well as to my then-country-of-residency, US? Are there any limitations on how I could manage these UK monies when not living in the UK?

Any help is greatly appreciated. And yes, I will post a simliar message on Fool UK. :)


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