Flatex.de account separation?

[user]

Hi everyone, I'm a non-domiciled UK resident and want to use Flatex.de for my investments. If I understand it correctly, it's not possible to segregate capital gains/dividends in separate accounts automatically on Flatex.de. According to their customer service, when you sell shares/get dividends, they pay it out in your "cash account". Can you manually segregate it? I'm not entirely sure about how the account segregation in praxis works.

For example, I have €100k invested (clean capital)

Cash account: €0
Investment account clean capital:: €100K

Then after the first quarter, I get my first dividends; for this example let's say it's $1K. Flatex will pay it out into the cash account.

Cash account: €1K
Investment account clean capital: €100K

Ideally, I have another investment account where I invest the dividends. Is this possible on Flatex.de? Is the cash account now considered "dirty"?

Cash account (Euro): €0
Investment account clean capital: €100K
Investment account foreign interest: €1k

After one year (4 quarters) with a 10% return, the accounts look like this:

Cash account (Euro): €0
Investment account clean capital: €110K ($100k +10%)
Investment account foreign interest: €4.4k (€4K dividends + 10% capital gains)

Now I have decided to sell all of my shares in the clean capital investment account (= €10k capital gains)

Cash account (Euro): €110K
Investment account clean capital: €0K
Investment account foreign interest: €4.4k

I invest the capital gains (€10k) in a separate investment account and remit the $100K to the UK.

Offshore accounts :
Cash account (Euro): €0
Investment account clean capital: €0K
Investment account capital gains: €10K
Investment account foreign interest: €4.4k
----------
UK account: €100k


I'm also confused about what happens with the capital gains from the dividend investments account. I know it's a complex topic, and I will ask an accountant/tax professional. I want to get a head start and understand it better.

Thanks so much; let me know if you have questions or if this example doesn't make sense. Any help is highly appreciated.

 

[Martin Everson]

According to their customer service, when you sell shares/get dividends, they pay it out in your "cash account". Can you manually segregate it?

Nope.

You can setup an additional USD and GBP account with Flatex. Then i.e dividends and interest are paid into the relevant currency account depending on the currency of the dividend. Otherwise they all get paid into the EUR account with auto conversion if USD and GBP does not exist but this does not really help. With Flatex you will always end up with dirty capital.

You need to go to Credit Suisse, UBS or HSBC in Switzerland who all understand UK non-dom status and have the booking instructions setup to settle trades to income and capital accounts correctly. Thats how I got around it when I was non-dom in UK.

 

[user]

Ohh ok perfect, thank you Martin, this is really helpful!

 

[aage]

You need to go to Credit Suisse, UBS or HSBC in Switzerland who all understand UK non-dom status and have the booking instructions setup to settle trades to income and capital accounts correctly. Thats how I got around it when I was non-dom in UK.

they will do it even you don't live in Switzerland ?

 

[Martin Everson]

they will do it even you don't live in Switzerland ?

Yes they will. Banks like CS have dedicated UK non-dom teams servicing the UK market. They know non-dom status and how to handle it inside out.