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Posted Mon, 11 Sep 2023 20:43:17 GMT by Yoko
Hi, Thanks for letting me to raise a question here. I have a property with mortgage in Hongkong under my sole name. However I don’t rent it out as my parents is living here and they pay the mortgage monthly to the bank from their own account. Under this circumstances, does it count as rental income and need to do tax return? Beside, if I sell the property later, do I need to pay capital gain tax? Thanks a lot!
Posted Wed, 13 Sep 2023 11:59:27 GMT by Yoko
Hi, could I get the feedback sooner? Thanks a lot.
Posted Mon, 18 Sep 2023 16:24:23 GMT by HMRC Admin 10
There is no rental income, as you parent's are paying your mortgage.  
If you sell the property, you may be subject to the equivalent of capital gains tax in Hong Kong.  
You would then convert the acquisition costs and the disposal value and costs to pounds sterling, to work out if there is a capital gain in the UK, if yes, the gain would be declared in a self assessment tax return.
Posted Mon, 02 Oct 2023 17:38:57 GMT by ShirleyT Tam
Hi HMRC Admin, I've got similar case as YoYo. With a property with mortgage in Hong Kong under my sole name and is the main place of residence when I was in HK. After moved to the UK, I didn't rent out as my brother-in-law is living here and they directly pay the monthly mortgage to the bank without any profit (indeed, no intention to let the property to make a profit literally). Under this situation, will it be treated as rental income ? Many thanks for your kind feedback!
Posted Fri, 06 Oct 2023 12:46:50 GMT by HMRC Admin 20
Hi ShirleyT Tam,

Yes, The money you are receiving to pay the mortgage, would be treated as rental income and taxed as such, as that is where the property is located.  
You would need to declare the income on SA106 as well as the tax deducted in Hong Kong and claim a foreign tax credit.

Thank you.


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