Transferring savings from HK to UK - any tax implications?

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  1. #1

    Transferring savings from HK to UK - any tax implications?

    Hi

    My father passed away 7 years ago and left me some savings in a Bank Of China annuity. It's a sizable amount. I'm going through a financial settlement order as part of a divorce in the UK. As a result, I may have to transfer this over to the UK. Are there any tax (Inheritance, Capital Gains or Income Tax) implications to doing this?

    Many thanks


  2. #2

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    Where did you live when you inherited the money? Where do you live now?

    How did you receive the money? As a lump sum?

    Last edited by greenmark; 13-05-2021 at 07:25 AM.

  3. #3

    Hi greenmark

    In the UK now and in the UK when he passed.

    It was a life assurance policy, and yes as a lump - 7 years ago, but I haven't touched it since.

    It's in a Bank Of China account in CHY if that makes any difference, so I guess it would have to be transferred to my UK account to GBP.


  4. #4

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    As far as i know, life isurance payout is not taxable.

    If the inheritance was taxable, it should have been taxed 7 years ago when it was paid out to you. Not now.


  5. #5

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    Life insurance payouts would normally be considered part of the estate and liable for inheritance tax.

    Where was your father domiciled when he passed away?

    If he was domiciled in the UK then the life insurance payout should have been added to the total estate.
    He we was domiciled outside the UK then only assets that were in the UK at the time would be liable for inheritance tax.

    As a UK tax resident, you are liable for capital gains on any investments around the world that you repatriate to the UK. That means you pay CGT on any gains since after you inherited it.

    When you repatriate the money, the HMRC can ask how you got hold of the money. If they discover that you should have paid the inheritance tax, they will ask for that money plus interest.