February 17, 2010
If I am based in the US, but open a Forex account in the UK do I have to pay UK taxes?
jrwax2 asked:
I'm based in the US and already have an US based FX account. Due to silly NFA rules and regulations I am thinking about opening a UK Forex account but am worried about potential taxes I would have to pay. Do I have to pay US and UK taxes if I have a UK based account and live in the US. I will not be spread betting.
I'm based in the US and already have an US based FX account. Due to silly NFA rules and regulations I am thinking about opening a UK Forex account but am worried about potential taxes I would have to pay. Do I have to pay US and UK taxes if I have a UK based account and live in the US. I will not be spread betting.
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Comments on If I am based in the US, but open a Forex account in the UK do I have to pay UK taxes?
If you are a USA citizen and open a private forex account in the UK you will only have to pay tax in the USA the same way you are paying will your USA account. The UK and USA and a double taxation agreement where no individual or company will pay the same type of tax in both countries. However if you open the account under a private company based in UK you will pay tax on the company profits in UK and tax on the dividends in the USA. You should consider both options depending on your tax bracket and the prevailing corporate taxes a private company may work out more cost effective.
I think you do..i would open an offshore bank account.