# US resident with UK presence tax question



## oliver1337 (Aug 31, 2016)

Hi,

I was born in the UK but moved to the US when I was fairly young and now I have dual citizenship. 

In 2013 I moved back to the UK for year, established a bank account, got a job and everything. I moved back to the US for family reasons but now I'm looking to move back to the UK for part of the year (1 to 3 months). 

Being that I will be renting from different places each year I want to setup a UK post box using one of those services you pay for an address so my mail can go to it and get forwarded along.

I work full time in the US but I also daytrade and would like to use my UK bank account for a UK broker as they has better regulations for forex.

Is the correct way to do my US taxes with my standard income and FBAR forms and my UK taxes for the daytrading income? 

I have been doing some research and I think what I'm trying to achieve is doable but I wanted to make sure it is legal and I'm not being ignorant or missing something.

Thanks in advance!


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## Bevdeforges (Nov 16, 2007)

No, as a US citizen, you are supposed to file your US taxes including all your worldwide income - which would include your day trading activities. You should have "checked out" of the UK system when you moved back to the US, but I don't know the UK rules on declaring and paying taxes on income for a non-resident (which is what you'd be, I believe, if you're only back there for a couple months a year).

You can take a credit on your US taxes for any UK taxes you pay on your day trading income there - but obviously, only if you include the day trading income on your US returns.
Cheers,
Bev


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## oliver1337 (Aug 31, 2016)

Ah ok that makes sense. I will declare my daytrading on my US taxes.

I don't want to completely check out of the UK system for daytrading tho, so I will find out what I need to do for taxes in the UK then. I'm guessing I will likely have to file and get a tax credit. 

Thanks for the help!


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## Dunedin (Aug 12, 2013)

In the first instance, your tax position in the UK depends on whether or not you are a UK resident for a tax year. This is determined under the Statutory Resident Test. You need to work your way through this. (It is more complicated than the equivalent US test.)

If you were UK resident under UK domestic rules, you could then look to the tide breaker test under the double taxation treaty.

Asuuming that you are not a UK resident, you would only be taxable in the UK on UK source income, such as UK employment income.

For UK tax purposes it is unlikely that day trading would be considered to be carrying on of a trade. The results would therefore only be liable to capital gains tax, and not income tax. Again assuming that you were not a UK resident, you would have no liability to UK tax.


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