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Capital Gains Tax on shares abroad

Hello,

I live in the UK at the moment and I am UK citizen. However, I will be moving to Germany fairly soon to live and work there for several years.

I have some shares in the UK that I might decide to sell.

I would like to understand what would be the consequence if I decide to sell my shares before or after my relocation.

If I sell them before, whom do I need to pay CGT - to the UK's HMRC office (by Jan 2014 - although I will be living outside of the UK for more than a year at that point), or to Germany's tax office since I will be living there at that point? Will I have a choice about this?

What happens if I sell them after I move?

I know that taxation law for CGT has changed in Germany in 2009 but there is a clause that says that the shares bought before 31 Dec 2008 will not generate any CGT. In my case, more than 90% of shares were bought before this date.

I would appreciate any advice or further information on this.

Thanks in advance.

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09th May 2012 06:56

"I know that taxation law for

"I know that taxation law for CGT has changed in Germany in 2009 but there is a clause that says that the shares bought before 31 Dec 2008 will not generate any CGT. In my case, more than 90% of shares were bought before this date." I can find no reference to this. CGT on disposal of Shares attracts 25% tax and if applicable a solidarity charge. As you will be resident in Germany not the UK for more than 5 years then UK CGT will not apply.

You should seek well versed advice on this. Regards Peter

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09th May 2012 11:57

No SImple Answer

Sorry this isn't one for which there is a simple answer at all - not least because of how CGT and residence interact, particularly if you are only abroad for a short period (less than 5 years) of time.  Without the complications of the German Tax.

You should really seek specialist advice on this.

 

 

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By armondo
09th May 2012 13:53

Thank you for your answers. At least I know now what I need to do.

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