BNO

I am a teacher working in a subsidised school in Hong Kong and contributing to Provident Fund (pension for teachers in subsidised schools). I am quitting my job in August and have applied for the withdrawal of the pension. According to the relevant authority, payment of my pension is expected to be made in late September (or later). However, I have planned to enter UK via BNO Visa in late August and I would like to know if my pension / provident fund benefits are taxable in UK. Thank you.

I moved from Hong Kong to the UK and became a UK resident in 2021/22. I sold a property in Hong Kong on 1 May 2021 which I used as my home over the entire ownership and made a capital gain on this disposal. I rented a flat in the UK as my home. Do I need to nominate my Hong Kong home in order to get Private Residence Relief, knowing the fact that if I nominate my Hong Kong home I need to stay in this Hong Kong home for at least 90 days in the tax year? If I do not need to nominate the Hong Kong home, would I get the PRR? If there is no capital gain tax on this disposal, do I need to file such a transaction in my tax return?

Hi
 

BCM ,

Please refer to guidance at -: Tax on foreign income  .

Thank you.

Hi
 

WTJ Law ,   Please refer to guidance at -: Capital Gains Manual  . Thank you.

I have gone through the previous questions and understand that according to Article 17 of 2010 UK/HK Double Tax Agreement (DTA): "Pensions and other similar remuneration (including a lump sum payment) arising in a Contracting Party and paid to a resident of the other Contracting Party in consideration of past employment or self-employment and social security pensions shall be taxable only in the first-mentioned Party." Under the Protocol, it is also stated that: "It is understood that the term “pension scheme” means any plan, scheme, fund, trust or other arrangement established in a Contracting Party which is: (a) generally exempt from income taxation in that Party; and (b) operated principally to administer or provide pension or retirement benefits or to earn income for the benefit of one or more such arrangements." From the previous Q&A, I note that the MPF scheme in Hong Kong is considered by HMRC as a pension scheme under the DTA. However, there are different kinds of contributions toward the MPF scheme, namely "mandatory contribution", "voluntary contribution" and "tax deductible voluntary contribution". They have different withdrawal requirements but are all under the umbrella of the MPF scheme for retirement purpose. Are all these kinds of contributions only taxable in Hong Kong, but not in the UK?

Hi,

Contributions would not be taxed but may be liable to relief.

Refer to guidance at:


Claiming tax relief on your contributions to overseas pension schemes


Thank you.

Hi, dear HMRC team, I sold an American Fund in a Singapore bank in Oct2021. It was sold for GBP37,004. I had a gain of GBP363. I understand I do not need to complete form SA108 because the asset was worth less than GBP49200 and the gain was less than GBP12300. Please advise me if I should report this in tax return. If I should, should I report in SA106, box33 or box41? Thank you very much.

Hi,
 

Yes, if  (a) the asset was worth less than £49200, and (b) the gain was fully covered by your Capital Gains Allowance (£12300)  you do not have to report the gain in a Self Assessment tax return. Thank you.

 

Hi HMRC admin, I have arrived at UK on 19th August 2021 and become UK tax resident since then. I have my last salary in late August 2021, when I have already became UK resident. But that monthly salary has already be taxed by the Hong Kong government as I have my tax clearance in Hong Kong. Do I still need to pay the tax for that August salary in UK? If no, do I need to apply to HMRC for exemption? Thank you.

Hi M Joster,
Under Article 14 of the Double Taxation Agreement, as the employment was carried out in Hong Kong, it is only taxable there. 
Thank you. 
 

Hi HMRC admin, I have a question about Personal Portfolio Bonds under the Double Tax Agreement between HK and UK. Before I became a UK tax resident in August 2021, I had two times of partial surrender of my life insurance which is a kind of Personal Portfolio Bonds. I want o ask whether the gain from these withdrawal can be exempted from UK tax under the Double tax agreement and split-year treatment? If yes, which article in the DTA is this kind of life insurance related to? Thank you. Lai

Hi,

Article 17 relates to pensions and other similar renumerations.  

The tax treaty can be found at:

Hong Kong: tax treaties


Thank you.

Hello HMRC Admin, I moved to UK in 25 March 2021 and I got my last salary from Hong Kong in 30 April 2021. I would like to know if I have to file the self assessment if my total annual income in 2021/22 tax year is less than personal allowance ? Thank you for your assistance.

Hi HMRC admin, I am planning to come using the BNO visa in November this year with my husband. We would like to ask if we are considered UK tax resident with the below situations during the tax year Apr 2022-Apr 2023: 1) both of us are not employed in UK after we arrived, nor continue being employed by HK firms 2) staying short-term (~1 month) in different towns in UK by AirBnB/hotel (for sightseeing +/- exploring possibility for longer term renting) 3) no other relatives as UK resident in the UK 4) not staying in UK for >90 days in the recent 3 years Thank you very much!

Hi Kerrie Cheung, 

If you are treated as resident in the UK from 25 March 2021, you will be required to complete a Self-Assessment tax return for 2021/22 to declare the Foreign Income from Hong Kong paid 30/4/21. 

Thank you. 



 

Hi

Ho Yee Shing,   We are unable to answer specific questions.  There is guidance at : Tax on foreign income   , to help you determine your residence status . Thank you.

If I am a U.K. tax resident, Gain on shares investment is subject to capital gain tax. Can my shares trading loss be set off with trading gain before paying capital gain tax?

I bought an insurance saving plan in HK for many years. If I become a U.K. tax resident, when I receive any payout of the HK insurance policy, either periodic payment as stated in the policy or money from surrender of policy, are these payment subject to any U.K. tax?

If I arrived U.K. in July this year and stayed here for more than 183 days, I presume to be a U.K. tax resident for the year 2022/23. 1) Would my salary earned, dividend received, investment gain between April and June in HK be subject to U.K. tax or tax free? 2) Do I need to report the items in (1) above in the U.K. tax return / self assessment? 3) Being a tax resident, am I only taxed for any income earned from the date I arrived U.K. or the whole year including the date before arrival (which is April to June)?

If Split Year treatment is not applicable, overseas income or gains will be subject to the UK tax from 6 April 2022