Reducing CGT on futures trading including non residence & using a non dom spouse

Reducing CGT on futures trading including non residence & using a non dom spouse

Question: UK Limited Company formed in Dec 2007 1 director who is currently the only shareholder 2 shares were issued, valued at £1 each Understanding the CGT position Datum Lets assume that the Company has made £3,000,000 in net profit from futures trading after paying Corporation tax. The Director can continue to pay himself a dividend / salary from the company or wind up the company and take the profits out of the Company. The Director would like to understand what the value of his shares are in order to estimate any CGT that would be payable if he wound up the Company.

Is 18% CGT payable (after CGT annual allowances)?

Has non business asset taper relief now been removed? Option 1 -- Establishing Non-Residence The Director is planning to live overseas and is considering how CGT could be treated upon the disposal of his shares. Based on Chpt. 5 of the tax book "Non-Resident and Offshore Tax Planning" I understand its necessary for The Director to be non-resident for 5 full tax years in order to avoid CGT on the disposal of his shares.

If the Director wound up the company in say year 2 of non-residence, is this treated as disposing of the shares for CGT purposes at that point in time?

Does he have to pay UK CGT and then claim it back after 5 years of non-residence?

If he returned to the UK within the 5-year period, when would the CGT on the shares be payable -- on his next tax return, or would he be contacted by HMRC?

Is the Director obliged to notify the HMRC that he has returned to the UK for more than 90 days in a tax year? Does this effectively reset the clock (ie he has to be overseas for another 5 full tax years) or is CGT now payable? Option 2 The Director has a non-Domiciled wife who was born overseas. The Director's wife holds an Indefinite Leave to Remain Visa for the UK and has lived in the UK for 2½ years. Prior to this his wife was resident overseas (see attached appendix for actual time spent in the UK). When is his wife considered resident in the UK from? I've been trying to figure out possible advantages of transferring the shares to a non-dom wife. Is it that you don't have to wait for a 5 full tax years of non-UK residence to avoid CGT but have to be careful of IHT (potentially exempt transfer)? I'm a bit confused about whether the non-domiciled wife needs to be non-resident to dispose of shares in the UK Company without paying UK CGT. If they decide to live abroad are there advantages of the Director transferring his shares in the Company to his non-domiciled wife before the Company is wound up?

Do the Director and wife need to be non-resident when the shares are transferred into the non-dom wife's name?

For disposal, how long does the wife need to be overseas to be classed as non-resident in the UK?

Should the shares be placed in a trust before disposal for IHT planning purposes? (I think this would render any £££'s from the disposal of the shares in the Trust as cash)

Assuming the wife is non-resident does the remittance basis now applying for UK CGT if the wife became UK resident again at some point in time in the future? . . . (to read the remainder of this article, please log in below.)