Any way around the deemed disposable rule

antimatterx · 10-11-2019 02:06PM #1

I'm 23, and I've always been interested in finance. I had planned to invest in funds such as the S&P 500, once I started working, and had a safety net in place.

I recently discovered the deemed disposable rule (which is stupid, why should I have to pay tax as if I've sold every 8 years), which kinda ruins my plans. Is there any way around this? Or are there any European funds that track American funds, that only require me to pay tax when I sell?

FFVII · 11-11-2019 06:05PM

antimatterx wrote: »

I'm 23, and I've always been interested in finance. I had planned to invest in funds such as the S&P 500, once I started working, and had a safety net in place.

I recently discovered the deemed disposable rule (which is stupid, why should I have to pay tax as if I've sold every 8 years), which kinda ruins my plans. Is there any way around this? Or are there any European funds that track American funds, that only require me to pay tax when I sell?

Seems to be a way around all of them.

RedRochey · 15-11-2019 01:37PM

Just to note that whatever tax you pay every 8 years is then used to offset the tax you have to pay when you actually dispose of the asset

The 8th year rule is there so revenue at least get some tax in instead of having to wait 20 years to get it

Non-EU-domiciled ETFs are CGT tax so if you find an American ETF that tracks the S&P500 then it's only CGT when you sell.

EU-domiciled ETFs are Exit tax (deemded disposal tax)

phantom_lord · 15-11-2019 03:43PM

Is it not time that we formed a group and lobbied for a more coherent approach on this

Any way around the deemed disposable rule

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