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  • 1 Post By stickyears
  • 1 Post By hullexile
  • 2 Post By Trodge

Returning to the UK - tax advice needed

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  1. #1

    Join Date
    Aug 2010
    Posts
    31

    Returning to the UK - tax advice needed

    Hi all,

    Apologies if this is a well worn topic but I can't find anything recent and specific to my query.

    I'm returning to the UK with my young family in December after nearly a decade in Hong Kong. We have saved a decent amount of cash for a deposit on a house, which is currently mainly in GBP in our HK account.

    I have had conflicting advice on what kind of tax I will need to pay / action to take to avoid tax or time consuming scrutiny.

    My main concern is over the taxable income for the UK tax year as we will be in the country for more than 90 days. Will we be liable to pay tax on any income earned in HK before we go back?

    Advice on this or any other pertinent issues that we should be aware of in order to plan our return would be greatly appreciated.

    Cheers


  2. #2

    Join Date
    Jul 2011
    Posts
    1,320

    Tax treatment for returning to (or leaving) the UK part way through a tax year are explained in RDR3 section 5:

    https://www.gov.uk/government/public...dence-test-srt

    Rich_uk likes this.

  3. #3

    Join Date
    May 2006
    Location
    Pampanga, Philippines
    Posts
    21,338

    One thing to watch out for if your earnings will be less in the UK than in HK: the tax people tried to get away with taking total earnings for the tax year (HK and UK), averaging it over the year, then taxing me at that level for the time in the UK. This despite me being on PAYE so they had clear records of my earnings in the UK.

    After filing a complaint the thousands I owed them turned into a rebate

    Rich_uk likes this.

  4. #4

    Join Date
    Feb 2018
    Posts
    4

    There will be no tax due on the cash you have in any bank accounts.

    Your foreign income (HK) will not be taxed in the UK as you'll qualify for split year treatment, see page 52 of RDR3 pdf in link sent by Stickyears.

    In addition to that, you should be crystallising any gains on investments before you become resident (unless within the UK allowances in which case no need).

    Last edited by Trodge; 22-08-2018 at 12:46 PM.
    Rich_uk and kittykaitak like this.

  5. #5

    Join Date
    Aug 2010
    Posts
    31

    Thanks guys. Much appreciated.

    Hard to know where to start when you make the decision to jump ship!