How tax on shares transferred from the UK to an overseas broker works

Disclaimer: The information in this article is for reference purposes only. Wise does not offer to buy or sell stocks, and all information on this page should not be considered financial or tax advice. All investment decisions and tax saving strategies should be made after thorough research and consultation with a qualified financial advisor. Remember that investments, even in low-risk funds, are never guaranteed and your capital is at risk.

Planning on moving abroad from the UK, and want to take your investments with you? This could be a good move, as it’ll be easier to manage your portfolio in the same country you’re living in.

But before you transfer shares or other investments abroad, it’s crucial to get to grips with the potential tax implications.

In this guide, we’ll look at how tax on shares transferred from the UK to an overseas broker works. This includes info on Capital Gains Tax (CGT) and whether you have to pay it on share transfers.

And if you’re looking for alternative ways to help your money grow, check out Wise Interest. It lets you earn returns on GBP, EUR and USD by opening a Wise account and investing in a fund that holds government-guaranteed assets, investing from as little as £1, €1 or $1 . Capital at Risk, growth not guaranteed.

Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

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Can I move shares to another broker?

Yes, you can move shares between brokers, and it’s actually a pretty common process.

As for how to transfer shares to a broker, there are a few different ways of doing it.

These include stock transfer forms, Direct Registration System (DRS) transfers and Automated customer account transfer service (ACAT) transfers - the latter is designed for transferring entire portfolios.

Which method will depend on the broker, the country you’re transferring to, which assets you’re moving and what kind of account you’re transferring assets into.

To find out about your options and start the process, you’ll need to contact your current or new broker.

How UK tax on stocks works

When buying or selling stocks in the UK as a UK tax resident, you’ll be subject to two types of tax:

• Stamp duty of 0.5% when buying shares¹
• Capital Gains Tax (CGT) of 18% or 24% (depending on whether you’re a basic or higher rate income taxpayer) when selling shares.²

It’s useful to know about both of these before investing, as these are essential costs you’ll need to factor in.

When it comes to transferring UK shares to an overseas broker, the key tax to know about is Capital Gains Tax - as this is the one you may have to pay.

Do I have to pay capital gains tax when transferring UK shares overseas?

Whether or not you need to pay tax on shares transferred from the UK to another broker abroad depends on your situation. Like with most things to do with tax, it can be very complicated - so it’s strongly recommended to speak to a professional tax adviser.

Let’s take a look at the basics you need to know, starting with when tax is typically charged.

When you sell UK shares, you may have to pay Capital Gains Tax (CGT) on any profit you make. It’s only charged on the amount of profit you’ve made since buying the shares - not on the total value of the investment.

There are a number of exemptions though, and everyone gets a Capital Gains Tax allowance each year. This is the amount you can earn in investment profits before you need to start paying tax.

CGT doesn’t only apply when selling shares, however. It can also be applied when ‘disposing’ of them, which can involve transfers. This is why you need to know about it if you’re planning to move investments overseas.

According to HMRC, ‘disposing’ of an investment can mean:³

• Selling it
• Giving it away as a gift
• Transferring it to someone else
• Swapping it
• Getting compensation for it - for example, receiving an insurance payout if it’s been lost or destroyed.

You don’t have to pay the tax if transferring shares to your spouse, civil partner or a charity. This could be an option - for example, if you’re both moving abroad, you can gift your shares to your spouse and therefore not have to pay CGT.

As for whether you have to pay CGT on shares transferred to an account in your own name in another country, you’ll need to get some expert tax advice.

You may not have to pay it - as transferring shares between your own accounts doesn’t usually count as disposing of them, for tax purposes.⁴
However, your particular circumstances and the fact of moving the shares out of the country may affect your tax liability.

UK tax rules on transferring or selling shares if you’re living abroad

The UK also has some rules about tax for UK citizens who permanently live abroad. These may affect your tax liability when transferring UK shares overseas.

If you’ve moved abroad and are no longer a tax resident in the UK for the year, you may not have to pay Capital Gains Tax when transferring or selling UK assets such as shares.³

This is unless you return within 5 years or sell shares in a company that is ‘UK property rich’ and you meet the conditions for an indirect disposal.³

Again, if moving abroad and working out what to do with UK assets, it’s always a smart move to get professional tax advice.

Where to get help and advice on tax when transferring shares overseas

A specialist tax or financial adviser should always be your first port of call before transferring or selling investments.

But you can also get help and support from your broker, both here in the UK and in the overseas country you’re looking to transfer your shares to. They can advise on the best and most tax-efficient processes for transferring your shares.

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Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

** Note: Access to invested funds mentioned comes with a limit of up to £10,000 for personal Wise customers and up to £100,000 for business customers.

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Sources used:

1. GOV.UK - tax when you buy shares
2. GOV.UK - Capital Gains Tax rates
3. GOV.UK - what you pay it on, rates and allowances and rules on moving abroad
4. AJ Bell - transferring shares

Sources last checked on date: 01-Sep-2025