BNO visa holder - property capital gain tax on 2015 or the date to immigrate UK ?

If the BNO visa holder immigrates to UK on 1 Oct 2024 and choose the arising basis for his domicile, he will be liable for UK capital gains tax on the sale of the non-UK property in Hong Kong. If he sells the property on 31 Sept 2025, the selling price = £500K. The market price of the property on 1 Oct 2024 = £400K And the market price of the property on 5 April 20215 = £200K My question is that which year of the cost it is to be referred to? 1 Oct 2024 on board to UK or 5 April 2015 ( non-resident capital gain tax calculation ?) ?

Can anyone reply to my question as below ? If the BNO visa holder immigrates to UK on 1 Oct 2024 and choose the arising basis for his domicile, he will be liable for UK capital gains tax on the sale of the non-UK property in Hong Kong. If he sells the property on 31 Sept 2025, the selling price = £500K. The market price of the property on 1 Oct 2024 = £400K And the market price of the property on 5 April 2015 = £200K My question is that which year of the cost it is to be referred to? 1 Oct 2024 on board to UK or 5 April 2015 ( non-resident capital gain tax calculation ?) ?

Hi

If you are tax resident in the UK for the whole tax year and use the arising basis, you would have to calculate the capital gain, using pounds sterling for all aspects of the calculation, using UK capital gains rules.  
You would be required to declare the property disposal and if capital gains tax paid in Hong Kong, a foreign tax credit claimed.

Thank you

 

My concern is which year to calculate the cost of capital gain tax. The year I bought the proeprty in 2015 or the market price of the year ( Oct 2024) I come to UK with BNO visa ?

Hi,

The answer to this question depends on the result of the statutory residence tests at RDR3:

RDR3: Statutory Residence Test (SRT) notes

If tax resident in the UK for the whole tax year and split year treatment does not apply, then yes, the capital gain would need to be reported, under the arising basis of taxation. A foreign tax credit of up to 100% of the foreign tax paid, can be claimed.

If split year treatment does apply and the disposal arises before arrival in the UK, then it does not need to be repoted, but can be mentioned as a free hand note, for reference only.  

The acquisition value and not the value of the asset on 1 October would be used to calculate any capital gain.

Thank you.