Hello and thank you for your question.
Yes, as a US resident you will pay federal and California income tax
the same as a US citizen must pay.
As to UK tax, as a general rule, you would expect to be protected from
UK tax under Article 13 of the US-UK tax treaty, summarized here
(pages 10-11)
http://www.inlandrevenue.gov.uk/cnr/usdownload_2002.htm
Notice there is a "temporary non-residents" provision that does
trigger UK gains tax if you've left the UK before realizing your gain
and then return to the UK afterwards (in this case you'd pay US and UK
tax, and the UK would allow a tax credit against your US tax).
Id. at 11
You can read the text of the Treaty itself at
http://www.intltaxlaw.com/TREATIES/UK/2001uktreaty.pdf
(see Article 13(5) and (6) on page 17)
Where options are concerned there's another consideration, which
exposes you to UK tax if you were UK-ordinarily resident (i.e.
domiciled) at the time the option was granted. To see how this might
apply to you, please read the 5 examples that Inland Revenue presents
at
http://www.inlandrevenue.gov.uk/manuals/DTRmanual/html/DTR01700/02_0073_DT1925B.htm
Please let me know via Request for Clarification of Answer which of
the 5 examples is closest to your situation, and if you are satisfied
that we've answered your question. I would appreciate your holding
off on rating my answer until I have a chance to respond.
Search terms used:
uk non-resident stock sale tax
uk "temporary non-residents" treaty gains
uk "temporary non-residents" treaty options
Sincerely,
Google Answers Researcher
Richard-ga |
