Rental income from Hong Kong Property

Hi HMRC I moved to UK last year and I spent some time to read about the DTA between Hong Kong and UK Refer to article 6, the income derived by a resident of a contracting party from immovable property situated in other contracting party may be taxed in that other party. If there is the case, the property rental income is not taxable to UK tax if the owner do not transfer that kind of rental into UK, is my understanding correct?

Hi

Article 6 of the tax treaty gives Hong Kong the rights to tax rental income from property located in Hong Kong.  
If you are resident in the UK, you are taxed on your world-wide income on the arising basis.  What this means is that although Hong Kong is allowed to tax your rental income, so is the UK, even if you do not bring the income into the UK.  
To avoid being taxed twice, you can claim a tax credit of up to 100% of the foreign tax paid.  
As an individual, who is resident but not domiciled in the UK, you can opt to use the remittance basis, so that you do not pay tax on income or capital gains not remitted to the UK, but that option has its limitations.  
Have a look at section 9 of RDR1 for guidance on the remittance basis (Residence, domicile and the remittance basis: RDR1).

Thank you

Hi, Thanks, but i am very confusing. In the below thread(refer to the link) , HMRC Admin 10 confirmed "As per Article 6 of the Hong Kong-UK Double Taxation Agreement, any income received from immovable property in Hong Kong would only be taxable in Hong Kong" and you are saying tax on both UK and Hong Kong, is there anything i misunderstanding ? or i misunderstanding the terms immovable property and property? https://community.hmrc.gov.uk/customerforums/ifp/fc694502-eaf8-ed11-a81c-6045bd0e3464?fbclid=IwAR3jk-2eYR_90_2HM25CCr9MPYcgbPIVp9-ZNbpMVgIqH5L8VTj-DPcCeR0

Hi Mor Sai,
Under Article 6 of the double taxation treaty - Income derived by a resident of a Contracting Party from immovable property (including income from agriculture or forestry) situated in the other Contracting Party may be taxed in that other Party.
This confirms it is only taxable in Hong Kong.
Thank you. 

Hi HMRC Admin, 1 more question. Refer to the DTA article 13, point 1. " 1. Gains derived by a resident of a Contracting Party from the alienation of immovable property referred to in Article 6 and situated in the other Contracting Party may be taxed in that other Party. " So the capital gain from immovable property when sell the immovable property, it is taxable in Hong Kong only which is same as rental, Is my understanding correct? I am talking about immovable property like house, land, not movable property. Thanks

Hi Mor Sai,
That is correct.
Thank you.