CGT International Student with UK passport

Holding UK passport but living in Hong Kong since birth. Own property and company shares in Hong Kong. Going to UK for 2 years study. No need for student visa. Will be in UK for more than 183 days in a year so will be counted as a tax resident? If sell the property or share during the period of stay, will CGT be charged on the gain? Any relief or exemption?

Hi,

If you are resident in the UK and you sell a property in Hong Kong, you will pay tax in Hong Kong on the disposal. You will also need to declare the disposal on a Self Assessment tax return, as you may also be liable to capital Gains Tax in the UK.  

After using the official exchange rates in force at the time of acquisition and disposal, you would follow HMRC guidance to calculate if a gain arises. If it does, it is reported on SA108, capital gains, and SA106, foreign, where you can claim a foreign tax credit for any tax paid in Hong Kong on the disposal.  

Capital Gains Tax

Tax on foreign income

Thank you.
 

So becoming a resident just because coming for study, and not for any other purpose, need to pay UK tax for overseas property when it so happens that the property is disposed during this temporary period?

Hi H Lm,

If you are resident in the UK you are required to declare your worldwide income in your Self Assessment tax return.
Your foreign gain should be declared on SA108. 
If foreign tax has already been paid on your gain then you should also complete SA106 to claim your foreign tax credit relief.  
Please see page 6 of SA106 at question 33 onwards – Capital Gains – Foreign Tax Credit Relief and Special Withholding Tax. 

Thank you.