Hi, I plan to move to london in the next few weeks under a work visa (not sure how long I will be there (months-years)). - What are the tax rules for trading in the UK (meaning how much do they take out etc ...) a. If they take out way too much is it still possible to trade using my US address and pay taxes on that? or could I get myself in big trouble if I do that? b. If I trade using a UK address do people in the UK fill out tax forms or do they automatically deduct or how does that work? - Are there any issues if I want to continue trading all the things I am used to over here ie U.S. futures/stocks/options/ etc ... - Are there different trading laws I will need to follow? thanks
Simply make an appointment with a chartered accountant when you get to the uk and he/she will put you right. The information you get will make you decide the best route to take without any major delays.
The good news as a non domiciled resident all your foreign income (including trading profits in your US brokerage account) will not be subject to UK tax unless you bring it into the UK. You may still be liable for US taxes, i dont know the US rules ie how long you have to be out of the US before you dont have to pay US taxes etc. There are no laws against trading Futures Options or Stocks that i know of. Even online gambling is encouraged.
You can trade 100% tax free with spread betting companies. Some of them are bucket shops but some allow you to trade futures in a spread bet wrapper. Otherwise, tax is not deducted from source. You have to make contact with the tax authorities (make sure you don't forget). I'm pretty sure there's a treaty between UK and US so you can pay only US taxes if that's more beneficial.
As far as I know I will need to pay UK taxes on my income ...? Least I think I was told this. But you're saying I dont have to pay UK taxes on investments? So do I need to bother to change my address with my brokerage account then?
Anything kept offshore (relative to UK) is not taxed in the UK unless it is brought in (and declared), when it is essentially treated as income in that year. Get an account with an ATM card if you have incidental expenses and want access. All employment income in UK is taxed at source, PAYE system.
I appreciate the info ... So let me get this straight ... My income from my job will be taxed; but can I then wire money from a UK bank to my US bank and use that money for investments? and so it will fall under the US taxes? (so basically at the end of the year I fill ou the US tax form etc?)