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Old 09-09-2008, 04:41 PM
fxmikefx fxmikefx is offline
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Join Date: Sep 2008
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UK Taxation of a non-resident company trading stocks and forex through a UK broker?

Hello. I was wondering if anybody knows, whether a non-resident company(LLC) trading forex through a UK broker will be liable to any taxation in UK? Company is not a UK resident. It pays a 10% income tax in its country of incorporation(Cyprus). It has no permanent establishment(i.e. branch, office etc.) in UK. Also, no UK business or activity apart from having several accounts with UK brokers for trading stocks(US) ans forex(primarily spot). Trading is one of my companys primary activity(i.e. main source of income). None of the companys shareholders is, or ever been, a UK citizen or resident(not sure if this matters). Now, the questions are. Will my trading profits be classified as cap. gains or ordinary income(in Cyprus classified as ord. income), and will I have to pay taxes in UK on any of those? Will there be any UK tax on interest(on deposit with a broker) or dividends(receiver from non-UK companies). And most importantly, if there is any tax on any of the above, will it be withheld automatically at source(i.e. by my broker), or would I have to report and pay it myself. If so, how would I report it(i.e. which forms would I use)?

Hope I'm not being too confusing. I would greatly appreciate any comments, suggestions or links to useful sources of information. Tried resolving those issue with HM Rev. and Customs, but with little result. Regards.
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