Transfer the money I got by selling my main residence in Hong Kon

I am a BNO visa holder and I first came to the UK on July 5, 2023. I have sold my main residence in Hong Kong in August 2023 and the money I got is around 160,000 GPB. I have put this money in different saving accounts overseas to earn some interest. I am going to transfer 80% of the money I got by selling my residence to the UK, which is GPB 128,000. I am having a job in Hong Kong in this fiscal year. I am going to apply remittance basis for this fiscal year, so that my salary earned from my job in Hong Kong will not be remitted to the UK. Under this scenario, do I need to pay tax?

Hi,

Using the remittance basis, means that only income and gains arising in the UK and any remitted income and gains are taxable. Unremitted income and gains is not taxed in that tax year, but if brought to the UK in a later tax year, it will be taxable in that later tax year.  

To claim the remittance basis means that you will need to complete a self assessment tax return, to declare the unremitted income and gains.  

You state that you will transfer £128000 from the sale of the property. This will become remitted income and may subject to Capital Gains Tax. If the property was your main residence for the whole period of ownership, then the private residence relief will cover any capital gain.  

Have a look at below for guidance on private residence relief.

Private Residence Relief (Self Assessment helpsheet HS283)

Also, have a look at section 9 of RDR1.

Residence, domicile and the remittance basis: RDR1

Thank you.

I have sold my main residence for the whole period of ownership, then the private residence relief will cover any capital gain. However, I have deposited the money I got from selling the property to different overseas bank accounts to earn interest, i.e. the money is not "clean capital". On the other hand, I am having a job overseas and I will not remit my overseas earnings to the UK by using the remittance basis, in this case, if I remit only the money I got from selling my main residence, will I need to pay tax?

Hi,
 

As private residence relief would cover the full gain, no capital gains tax woudl be payable.  Any interest arising from the proceeds of the disposal, would be taxable and should be declared in a self assessment tax return. Thank you.