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Posted Wed, 09 Dec 2020 04:54:14 GMT by WTJ Law
I have a MPF (Mandatory Pension Fund) in HK. If payment out of the MPF paid to me after I become UK resident. Is it subject to UK tax. Does Article 17 of UK/HK Double Tax Agreement stated Pensions arising in HK paid to a UK resident, is only taxable in HK JL
Posted Thu, 10 Dec 2020 11:09:16 GMT by HMRC Admin 15
Hi
Yes a UK resident you will need to declare this pension on Foreign Section of Self Assessment Tax Return, if this remains taxable in Hong Kong you can claim foreign tax credit relief when submitting your tax return
Thanks
Posted Sun, 13 Dec 2020 12:28:34 GMT by WTJ Law
After I declare this pension, would my pension be charged on Income Tax, and if so how? I understand pension in the UK is charged in the following manner: 25% of the lump sum is free (personal allowance not affected), remaining 75% lump sum would be treated as income
Posted Wed, 16 Dec 2020 15:51:21 GMT by HMRC Admin 14
Hi, You are correct that non UK residents who sell a UK property can use a rebasing method to 5th April 2015. This is becuase prior to this date non UK residents were not chargeable to capital gains tax. UK residents have always been chargeable to income tax on their worldwide income, dependant upon the rules within the relevant tax treaty with the other country. Any capital gains for a UK resident is worked out in the same way, regardless of which country the gain arose. Thank you.
Posted Thu, 17 Dec 2020 02:53:08 GMT by WTJ Law
Your answer is not to the question that I asked. Under UK/Hong Kong Double Taxation Treaty and DT9207, stated that pensions arise in Hong Kong are taxable ONLY in Hong Kong. Therefore there is no liability to UK tax for a Hong Kong pension received by a UK resident after 5 April 2011. Please confirm my understanding is correct.
Posted Thu, 24 Dec 2020 15:32:04 GMT by HMRC Admin 11
Hi,

My apologies, I believe that the incorrect response was posted.  

Where the Hong Kong pension is paid in consideration of past employment or self-employment, then yes it will only be taxable in Hong Kong and no declaration of this amount needs to be given to HMRC. 

Thank you.
Posted Tue, 19 Jan 2021 22:25:45 GMT by MK2019
Hi! Based on above HMRC's reply, my understanding is I do not need to declare the MPF amount which arising from Hong Kong for my past employment. Even the MPF amount in lump sum payment paid to me during I become UK resident for the tax year. Thus, I do not need to count and declare the MPF amount as one kind of foreign income earned during the tax year, in case my total income (excluding the above MPF lump sum payment received )is below GBP2000 during the tax year, I do not need to submit self assessment tax return. Please correct me if my understanding is wrong. Thank you!
Posted Wed, 27 Jan 2021 15:28:33 GMT by HMRC Admin 19
Hi,

As a UK resident you will need to declare your overseas pension, if this is taxable in Hong Kong, when you complete the foreign section of the tax return and include the tax deducted overseas and claim foreign tax credit relief:

2010 Hong Kong-UK DTA

Thank you.
Posted Mon, 01 Mar 2021 15:09:22 GMT by Siusin0405
But MPF(mandate pension fund in hk ) is not subject to any tax in HongKong , so is it taxable in UK ?
Posted Wed, 03 Mar 2021 15:03:13 GMT by HMRC Admin 19
Hi,

The UK/Hong Kong treaty provides that all pensions which arise in Hong Kong are taxable only in Hong Kong, please see the link below:
DT9207

Therefore there is no liability to UK tax for a Hong Kong pension paid after 5 April 2011. 

Thank you.
Posted Mon, 15 Mar 2021 04:27:05 GMT by BigHead
I work in a NGO in HK with a defined benefit pension workplace scheme (i.e. the Pension Commencement Lump Sum (PCLS) and monthly pensions that I will receive at retirement depends on my highest salary, length of service, etc.) At the retirement age of 60, the PCLS that I will receive can be 50% maximum and the remaining will be received as monthly pensions. As a UK resident (after 183 days, right?), I have a few questions: 1. This PCLS at 50% is not taxable in HK. Is this PCLS at 50% taxable in UK? Do I need to report this in the tax return in the particular tax year when I receive this amount? 2. I understand that the remaining monthly pensions are taxable in HK. However, I still need to report this in the yearly tax return and can claim foreign tax credit relief. Right? Thanks.
Posted Wed, 17 Mar 2021 12:57:35 GMT by HMRC Admin 19
Hi,

As per Article 17 of the tax treaty between UK/Hong Kong, any pension payment arising in Hong Kong, paid to a UK resident, is taxable only in Hong Kong. This income will therefore not need to be reported to the UK. 

UK/HONG KONG DOUBLE TAXATION AGREEMENT AND PROTOCOL

Thank you
Posted Wed, 07 Apr 2021 21:22:32 GMT by John Lang
Hi, I am holding Singapore passport and am living in Hong Kong. My wife (holding BNO) with me will go to UK this year. Singapore has Central Provident Fund (CPF) which is a comprehensive social security savings plan for Singaporean retirement years. it is similar as MPF in Hong Kong. Few year later (when I am 65), CPF LIFE is an annuity scheme that provides a lifelong monthly payout to me. Do I need to report this in the tax return? Thank you
Posted Tue, 20 Apr 2021 07:54:09 GMT by HMRC Admin 19
Hi,

We need to look at the Double Taxation agreement with each country separately. UK/Singapore agreement - please see article 18 which states that the pension is taxable in the country the recipient is resident.

UK/Singapore Double Taxation Agreement 

Thank you.
Posted Thu, 22 Apr 2021 08:03:14 GMT by kongjai
Hi, From the thread above, I know that pension like MPFs in HK would not be taxed in the UK under DTA. However, how is pension being defined? Say, there is a thing called deferred annuity, which pay out small amount of $ when one get old. Is it also consider a pension and don't need to pay UK tax?
Posted Sat, 24 Apr 2021 10:52:21 GMT by Frederick Siu
Hi, I have a provident fund arising from my employment in HK but the payment will be due after I arrive in the UK. Is this amount subject to any pension tax/income tax? I heard that there is a policy revision in Apr 2017 about Pension Tax for overseas pensions. Will this new policy affect the double taxation treaty? Thank you very much.
Posted Mon, 26 Apr 2021 11:49:15 GMT by HMRC Admin 17
Hi,
kongjai,
 
Please see the tax treaty with Hong Kong here:

UK/HONG KONG DOUBLE TAXATION AGREEMENT AND PROTOCOL

This would also include an annuity. 

Thank you.
Posted Tue, 27 Apr 2021 10:06:47 GMT by HMRC Admin 2
Hi Frederick Siu,

If you are UK tax resident then you will be subject to income tax on any foreign income when it is paid.

However the tax treaty states that any pensions that arise in the Hong Kong are taxable only in Hong Kong.

DT9207 - Hong Kong: Pensions

Thank you.
Posted Tue, 18 May 2021 20:55:38 GMT by Cheung
Hi, Similar to Article 17, Article 18 provides that salary paid by the Hong Kong Government is only be taxable in Hong Kong subject to some exceptions. I am an ex-civil servant and received salary for the period when I was on pre-resignation leave. Since I was on leave during the whole period and have not rendered any services in UK. It appears to me that the salary amount is only taxable in Hong Kong. Is it necessary to report this in the tax return? Thank you.
Posted Thu, 20 May 2021 10:30:36 GMT by HMRC Admin 4
Hi,
If this is only taxable in Hong Kong then you would not need to enter this on the return unless tax has been deducted in the UK. In this case it would be reported as income but you can then claim for relief of this under double taxation by completing the SA109 and the HS304. 

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