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Transferring savings to UK Bank *before* leaving HK

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  1. #1

    Transferring savings to UK Bank *before* leaving HK

    Hi,

    I've decided I need to leave my job in HK as I'm completely burnt out and not in a good place. Looking at moving back home (to the UK) and becoming a UK resident again end of September this year.

    Does anyone know if I can transfer any number of savings from HK bank account to UK bank account tax free in the UK, after I've become a UK resident again?

    If not, then presumably I can work on transferring all of my savings now (and maybe leaving a little in my HK bank account) before I move back. Then, not have to pay any UK tax on them after I'me a UK resident again?

    Thanks for the non-professional advice!


  2. #2

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    Transferring money from one place to another doesn't create any tax liability. The money was presumably earned here and taxed here, and any interest or gains earned while you were resident here also are none of the UK's business when you return.

    From the point you are UK tax resident anything further earned on this money from that date on is UK taxed.


  3. #3

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    Transfer at anytime - now and later. I worked in HK for 3 years and am now in UK. I always transferred when the exchange rate was good for me both whilst in HK and after I returned.

    On a related note these are 2 good ways of transferring money. Generally better rates than the banks. It's not been great for the last 10 months - pound too strong!

    https://wise.com/


    https://www.instarem.com/en-gb/


  4. #4

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    Quote Originally Posted by Pauljoecoe:
    On a related note these are 2 good ways of transferring money. Generally better rates than the banks. It's not been great for the last 10 months - pound too strong!

    https://wise.com/


    https://www.instarem.com/en-gb/
    I've used both of these options before. But now that IB doesnt have any monthly fees, it maybe an even better option.
    Sith and kittykaitak like this.

  5. #5

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    If you move to the UK in September, then you will be a UK resident for the tax year 2021/2022. You will have been in the UK more than 90 days.

    That means that any capital gains that you get from the money you transfer to the UK might well be considered taxable as capital gains taxes. If you are just transferring savings without any capital gains, that's fine. But if you are selling up investments then you need to pay CGT on the year that the gains are booked.

    You could also be liable for UK income taxes on any salary income you gained here in Hong Kong from April until you return to the UK in September.

    The tax man does not care that the income or capital gains were done a few days before you moved back. To them, those can still be taxable if they're booked in the same tax year that you moved back.


    https://www.gov.uk/tax-return-uk#:~:...ide%20the%20UK


  6. #6

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    Quote Originally Posted by greenmark:
    If you move to the UK in September, then you will be a UK resident for the tax year 2021/2022. You will have been in the UK more than 90 days.

    That means that any capital gains that you get from the money you transfer to the UK might well be considered taxable as capital gains taxes. If you are just transferring savings without any capital gains, that's fine. But if you are selling up investments then you need to pay CGT on the year that the gains are booked.

    You could also be liable for UK income taxes on any salary income you gained here in Hong Kong from April until you return to the UK in September.

    The threshold on Capital gains is £12300 so no tax due up to that amount.

    I am confused by you other statement here. No work income/salary received in Hong Kong is taxed in the UK is you are not resident in the UK. Doesn't matter if you return mid tax year. You pay tax on that income in Hong Kong.

  7. #7

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    Quote Originally Posted by Pauljoecoe:
    The threshold on Capital gains is £12300 so no tax due up to that amount.

    I am confused by you other statement here. No work income/salary received in Hong Kong is taxed in the UK is you are not resident in the UK. Doesn't matter if you return mid tax year. You pay tax on that income in Hong Kong.
    Yes you're right on that one. Sorry for the confusion.