During the past year, we have seen increasing interest amongst both expatriates and local-residents who wish to move to the UK from Hong Kong. According to a British Home Office survey, most local Hong Kong residents who successfully applied for a pathway to UK citizenship are university educated, married or in a relationship, have children, and have no plans to return to the city.
In the UK, residence and domicile will determine how much UK tax to pay. Once you become a UK resident, you will be liable to UK taxes on worldwide income and gains. And if you are also UK domiciled, income and gains are taxed as they arise, regardless of whether they are remitted to the UK or not. That means if you sell a property that you own in Hong Kong, or earn interest on a bank account there, you will have to pay UK tax. Also, UK inheritance tax at 40% will be levied on your worldwide assets upon your death, not just on assets situated in the UK.
As you can see, the UK is not as ‘tax-friendly’ as Hong Kong! It is essential, therefore, that you take professional advice before you relocate.
Clients of H Capital with US$1M or more under our management and care benefit from an initial face-to-face consultation with a qualified tax adviser.
Contact Us Now - place your portfolio under our care, we will then help organise your tax affairs. Simple.
