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Posted Thu, 30 Nov 2023 14:59:36 GMT by Alex Lam
Hello, I have a question about transfer of investment mutual funds. My wife and I come from Hong Kong and are currently tax residents in the UK. I have a solo bank account in Singapore, as well as a joint account with my wife in the same bank. We are living in the same place in the UK. I plan to transfer 4# investment mutual funds from my own solo bank account to our joint account with my wife. May I ask will there be any tax implication, e.g. CGT, in doing the transfer? Do I need to report the capital gain or loss in the 50% of each investment mutual fund transferred to my wife? After the transfer of the mutual funds to our joint account, do I need to report this in my tax return next year? Furthermore, according to HS281, 'If you and your spouse or civil partner are living together, any transfer of an asset between you is treated as giving rise to neither a gain nor a loss to the person transferring it. Any amount actually paid is ignored. If the person receiving the asset later disposes of it, they will be treated as if they had paid an amount equal to the total of your costs.' May I ask does the 'asset' mentioned above also include shares and investments (like investment mutual funds in my case)? Thank you very much for your help. Kind Regards, Alex Lam
Posted Fri, 01 Dec 2023 12:15:15 GMT by HMRC Admin 25
Hi Alex Lam,
There are no UK tax implications arising from the transfer of an asset between spouses and civil partners.
If your wife then disposes of the funds, then she may be liable to Capital Gains Tax as you describe from HS281.
Thank you. 
Posted Fri, 01 Dec 2023 12:43:58 GMT by Alex Lam
Dear Madam/Sir, Thank you for your prompt reply. Please allow me to ask a follow-up question. As I plan to transfer the assets from my own solo account to a joint account with my wife, in case we dispose of the funds in future, both of us (my wife and I) will be liable to Capital Gains Tax in a 50% / 50% manner. Is my understanding correct? Thank you very much for your help. Kind Regards, Alex Lam
Posted Tue, 05 Dec 2023 13:23:55 GMT by HMRC Admin 32

Foreign trust income is declared on a paper tax return SA1107, along with a paper SA100 or if you have a government gateway user ID and password, you can choose between submitting a paper tax return and buying a commercial tax return that supports trust income. You cannot use HMRC online tax return, as it does not support trust income. You can find a list of commercial suppliers at:

Self Assessment commercial software suppliers

You ar required to submit the tax return in its entirety in the same format.

The Self Assessment Tax Return is used to declare world-wide income, so your wife would declare her employment income, UK interest and dividends and foreign sources of income.  

There are supplementary pages for self assessment that cover, employment, self employment, partnerships, income from property, foreign income and gains, UK and foreign trusts, capital gains and residence.

The money you earn from the Hong Kong stock market is likely to be a capital gain. This would be reported on SA108 and if foreign tax paid, SA106.

Thank you.

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