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UK Tax Resident sells property in HK... CGT in UK or HK?

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  1. #1

    UK Tax Resident sells property in HK... CGT in UK or HK?

    I have a property I bought in HK.

    If I return to UK and become tax resident there, and subsequently sell the HK property, am I liable to pay CGT in HK or UK.

    And if I choose to rent out this HK property, am I right in assuming that I would only pay HK income tax on the rental income?

    Many thanks in advance!


  2. #2

    Join Date
    Mar 2007
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    1,650

    I believe you now get charged on Global Income if a UK Tax Resident. Also get charged CGT in proportion with how much time you were a tax resident in UK whilst holding the property.


  3. #3

    Thanks si0001.

    So if I was only ever tax resident in Hong Kong during the period I have owned the property, I would have to sell the property while still tax resident in HK in order to avoid CGT?


  4. #4

    Join Date
    Apr 2013
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    The DTA does have something on capital gains, and also on how double taxation is avoided:

    https://www.gov.uk/government/upload...-_in_force.pdf


  5. #5

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    Quote Originally Posted by honkkongjohn:
    Thanks si0001.

    So if I was only ever tax resident in Hong Kong during the period I have owned the property, I would have to sell the property while still tax resident in HK in order to avoid CGT?
    I'm not 100% sure because I only glanced over the rules but I believe it's a linear type calculation.

    If you held the property 9 years whilst in HK and 1 year as a UK Tax resident then you pay 10% of the total capital gains tax assessed.



    Or something along those lines.

  6. #6

    Join Date
    May 2008
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    since HKG and UK are AEOI members they have a duty to report depending on your tax residency
    Rather than get wrong advice here I suggest you speak to professional people in the business

    https://www.justanswer.co.uk/sip/tax...yAAEgLZpfD_BwE

    Offshore Tax Reporting Becomes More Urgent Amid New UK Penalties

    shri likes this.

  7. #7

    Well done Si0001....

    I came across the same document as you but couldn't make head nor tail of it....

    I will definitely seek expert advice, but I'm hoping that you're right about the linear part... otherwise it would feel very unjust to pay CGT to UK government on a gain made in HK... (actually it still feels unfair!)

    Once I find out I will post on here for the benefit of others in the same boat...


  8. #8

    Thanks Dynamco.... very scary how much trouble you get in even without trying to avoid obligations... gotta feel sorry for Mr Green!


  9. #9

    Join Date
    Jun 2014
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    It's complicated - suggest you speak to a UK tax advisor. There's stuff around Domicile and Remittance Basis that affects you and on CGT there's stuff like PPR and the various cases under the 2013(?) finance act which will impact you. If you are interested, I can pass you the name of a firm/person based in HK who can help - i'm not affiliated with them at all but I do know the guy who now heads up the HK office and he knows his stuff.

    shri likes this.

  10. #10

    Yes please Shiojiri....

    Thanks also to Nick 5000 (I mistakenly thought that it was Si0001 who posted that document)


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