Is the 41% Exit Tax Soon to be Scrapped? Michael McGrath to Review

Corola said:
But the period of the audit was 2019-2022. Before 2022 it was the case that US ETFs were taxed under CGT. It's not clear from the post what disposals there were in 2022 that would fall under the new ambiguous guidance.
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Why would there need to be disposals?

As we know, US ETFs must distribute dividends.

It therefore follows that there must have been dividends paid in 2022 post the change in the Revenue guidance.

These dividends must have been recorded in 2022 under general tax principles (income tax) and Revenue accepted the filing as submitted.

Therefore these US ETFs were accepted as taxed under general tax principles and not gross roll up.

QED
 
You said yourself that each ETF must be treated on a case-by-case basis. So in this case, and this case only, we can say this specific portfolio falls under CGT. We can't say the same for all US ETFs.
 
Corola said:
You said yourself that each ETF must be treated on a case-by-case basis. So in this case, and this case only, we can say this specific portfolio falls under CGT. We can't say the same for all US ETFs.
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Correct as I expressly stated “these ETFs” I wasn’t making a generalisation.

Equally, not all U.K. investment trusts are CGT you can’t make generalisations unfortunately
 
I agree you weren't generalising, I was replying to this specific comment that we cannot generalise:

joe sod said:
revenue were happy that all his portfolio of etfs that were us domiciled were correctly categorised as cgt shares under normal cgt taxation not deemed disposal during an audit. It was the first hard example of how revenue are actually dealing with us domiciled etfs
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Corola said:
I agree you weren't generalising, I was replying to this specific comment that we cannot generalise:
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I wasn't generalising either but reading between the lines the revenue auditors weren't going through his portfolio with a fine tooth comb to differentiate between different us domiciled etfs, sure they obviously don't have their own specific differentiating criteria either. It's alot easier just to accept the simpler original classification.
 
Sarenco said:
Do tell.

I’ve never heard of any situation where Revenue attempted to argue that any UK investment trust was not subject to general tax principles.
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And I have it in good authority that the US ETFs I use I my client portfolios would be taxed and, ex post they were, under general tax principles but you saw fit to state that in “your opinion” they were not.

You can’t have it both ways.
 
Marc said:
And I have it in good authority that the US ETFs I use I my client portfolios would be taxed and, ex post they were, under general tax principles but you saw fit to state that in “your opinion” they were not.
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Sorry Marc but I didn’t express any opinion on your client’s mystery portfolio (how could I?) and didn’t comment on your anecdote about the Revenue audit.

Perhaps you are confusing me with another poster?

In any event, could you please point us to the specific UK investment trust that you believe is not taxable under general principles?

Thank you.
 
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