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Returning to UK tax preparation.

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  1. #11

    Thanks wanderer, so in short if you leave any assets or money abroad it all needs to be declared. Now i wish started planning another year earlier lol.

    Not sure how life assurance investments are treated though as the longer you leave them, the bigger the payout.


  2. #12

    Join Date
    Feb 2005
    Location
    Manchester, UK
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    How about MPF money, do i hide it in a suitcase when i move to UK?? lol will it get taxed in UK.


  3. #13

    Join Date
    Feb 2009
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    8,279

    In general, the UK concept sounds just like Australia. Regarding property CGT, if you buy a property 10 years ago for $5m, the day you arrive in Australia it's valued at $10m, then you sell 2 years after arriving in Australia for $12m, then the CGT you have to pay is only on $2m (the difference between the current selling price and the value at the time you became Aussie resident again). I am not sure if the UK is same concept as this.

    The thing I am not sure about is how do you prove the value of your property on the day you became a resident again. I moved to Australia on January 11th this year. I just took a screenshot of the property value from HSBC and Standard Chartered online valuation tool on this date. I am not sure in the future, when I sell my HK property, if the Aussie tax office will accept this kind of website proof of valuation. We'll see. No intention of selling just yet.

    Regarding moving money from HK to UK, I don't think there is any kind of tax on this if the source of funds is just HK savings. ie you held the funds in a HK bank account, then moved it to UK. This should be tax free. But if you sell a property in HK, then move these funds from sale of property from HK to UK, then this is where you should pay some kind of tax, in this case CGT. So you may need to provide proof of the source of funds when transferring.

    Similar with other investments, shares, etc. If you hold a pile of HK shares, transfer the money to UK, then I expect if you made a profit between buying and selling the shares you have to pay GST tax on this profit.

    But it works both ways. If you are a shit investor and bought HSBC shares for $60, sold them for $40, transfer the money to UK, then you made a LOSS and this will reduce your tax in UK right? I mean you can claim a deduction from UK tax office at end of year from the loss you made on your HK investments. Anyway this is the way it works in Aus. All your worldwide income and losses is considered in your tax payable.

    chuckster007 likes this.

  4. #14

    From what i gather so far about the uk tax system is that all gains(or future) from property, shares realised in the same tax year as the you become resident again is all taxed.

    So makes sense to sell up in the previous tax year.

    If you think your property will be worth more in the future and it will offset future CGT then it maybe worth holding onto it. Saying that 2047 feels much closer than it did a year ago.


  5. #15

    Join Date
    Aug 2017
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    Original Post Deleted
    Wasn’t talking about property, there is no tax paid in UK on earnings in HK. So as far as cash is concerned it is the correct advice.

  6. #16
    Quote Originally Posted by bdw:
    In general, the UK concept sounds just like Australia. Regarding property CGT, if you buy a property 10 years ago for $5m, the day you arrive in Australia it's valued at $10m, then you sell 2 years after arriving in Australia for $12m, then the CGT you have to pay is only on $2m (the difference between the current selling price and the value at the time you became Aussie resident again). I am not sure if the UK is same concept as this.

    The thing I am not sure about is how do you prove the value of your property on the day you became a resident again. I moved to Australia on January 11th this year. I just took a screenshot of the property value from HSBC and Standard Chartered online valuation tool on this date. I am not sure in the future, when I sell my HK property, if the Aussie tax office will accept this kind of website proof of valuation. We'll see. No intention of selling just yet.

    Regarding moving money from HK to UK, I don't think there is any kind of tax on this if the source of funds is just HK savings. ie you held the funds in a HK bank account, then moved it to UK. This should be tax free. But if you sell a property in HK, then move these funds from sale of property from HK to UK, then this is where you should pay some kind of tax, in this case CGT. So you may need to provide proof of the source of funds when transferring.

    Similar with other investments, shares, etc. If you hold a pile of HK shares, transfer the money to UK, then I expect if you made a profit between buying and selling the shares you have to pay GST tax on this profit.

    But it works both ways. If you are a shit investor and bought HSBC shares for $60, sold them for $40, transfer the money to UK, then you made a LOSS and this will reduce your tax in UK right? I mean you can claim a deduction from UK tax office at end of year from the loss you made on your HK investments. Anyway this is the way it works in Aus. All your worldwide income and losses is considered in your tax payable.
    Actually that makes a huge difference in my decision to sell or rent. If the property valuation is calculated on the day i return to the UK, then in theory i will only pay CGT on modest gains or zero, if im a shit investor

    I'm sure the taxman will be none too happy if you paid little or no CGT on a foreign property.

  7. #17
    Original Post Deleted

    Yes I've been quoted some nasty amounts for 'proper advice' hence asking for free advice first for a feel.

    Yes the November budget looks bleak, hope its not a permanent CGT increase and only to recoup some losses

  8. #18
    Original Post Deleted
    A few thousand is fine, its finding a trustworthy one.