Expat accounts / low tax investments

[Flapster]

Hi all

I will consult an financial advisor / accountant, but am starting to do some research first so I can come armed properly. One avenue of this research is to tap into the collective brain trust here.

I am going to receive a substantial gift from a parent. For various reasons, I don't want to hold this money in Hong Kong. I have investment accounts in the UK, and hold the bulk of my investments in these accounts, but obviously this attracts capital gains / income tax.

I am wondering whether it may be beneficial to offshore this gift into an alternative low tax environment, such as the Channel Islands. Before making my enquiries, I wonder if there is anyone here has any pointers, or has done anything similar. I am obviously after low fees, and low taxes.

Cheers

Edit: I am planning to remain resident in HK, this isn't about relocation, hence am wondering about restrictions on non-residents investing in offshore investment accounts

[becomjapanHK]

Channel Islands or Singapore maybe......

Channel Islands will give you low/no tax.....but maybe higher fees (depending on what you invest in).
Singapore jurisdiction may give you lower fees but maybe higher potential tax incidence/exposure....

[Morrison]

Does the UK tax its nationals even though they live abroad?

[Flapster]

Does the UK tax its nationals even though they live abroad?

Yes, need to pay tax on income

[riversidejr]

To be honest I do not quite understand some of your statements. Assuming you are only fiscally resident in Hong Kong, how would the location where the investments are held impact the personal tax treatment, i.e. if you receive a dividend from a US coporation, this will be subkect to withholding tax due to your residence in Hong Kong no matter whether you hold this in a HKG or UK investment account.
If you are referring to holding investments in a UK company that is ultimately owned by you, then this is another discussion.
So at first glance, if you don't like to hold the funds to be received in Hong Kong, just open an investment account in a more favorable location and continue to enjoy the favorable tax regime in Hong Kong based on your tax residence there.
Edit: My statement above does not consider any taxation based on Nationality.

[pin]

Singapore would be best bet.

CI, if you already have UK assets, tax liability may be an issue (due to double tax treaty). May want to double check this point. I'm just an internet person.

Also how "fancy" and "structured" do you want to get?

If you want to keep it simple and just buy ETF's you could open a Swissquote Luxembourg account.

[Trebor]

Yes, need to pay tax on income

Only on income sourced in the UK though. Channel Islands are part of the UK banking system but not part of the UK so is probably a good option. Being from Guernsey i still have a guernsey bank acocunt but only maintain a nominal balance in it. If you are going to invest it why not open an IB account or something?

HSBC Expat in HK book their accounts out of Jersey, maybe go and speak with them. Best of both worlds.

[Flapster]

Only on income sourced in the UK though. Channel Islands are part of the UK banking system but not part of the UK so is probably a good option. Being from Guernsey i still have a guernsey bank acocunt but only maintain a nominal balance in it. If you are going to invest it why not open an IB account or something?

Thank you - yes, on income in the UK, which any UK investment accounts would be.
Do you know if non-residents can open an investment account, and therefore avoid paying tax on income (obviously will continue to look myself).
IB account might be an option - don't they need to be based somewhere, and therefore liable to tax - or are you saying that if I open an IB account in HK, it would be tax free as would be resident in HK? Are they considered one of the cheaper options? Any security to protect against future Chinese encroachment? I am reluctant to put loads of money in HK, and would prefer more stable environments, e.g. Singapore or Channel Islands

[Trebor]

Thank you - yes, on income in the UK, which any UK investment accounts would be.
Do you know if non-residents can open an investment account, and therefore avoid paying tax on income (obviously will continue to look myself).
IB account might be an option - don't they need to be based somewhere, and therefore liable to tax - or are you saying that if I open an IB account in HK, it would be tax free as would be resident in HK? Are they considered one of the cheaper options? Any security to protect against future Chinese encroachment? I am reluctant to put loads of money in HK, and would prefer more stable environments, e.g. Singapore or Channel Islands

IB is a US company and yes you can state your tax residence as HK which would be true. Dividends and gains would be tax free. Yes it is really cheap for brokerage.

[Flapster]

IB is a US company and yes you can state your tax residence as HK which would be true. Dividends and gains would be tax free. Yes it is really cheap for brokerage.

Thank you, appreciated