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Posted Thu, 30 Nov 2023 21:00:41 GMT by Alex Lam
Dear Sir/Madam, Hope this message finds you well. I have relocated to the UK under the BNO scheme and is a tax resident in the UK. I have recently switched the funds in my Hong Kong 'Mandatory Provident Fund (MPF) account', and my Hong Kong 'Tax Deducible Voluntary Contributions account'. They are 2 separate accounts under Manulife Hong Kong. I can only withdraw the money from the HK MPF account and the Tax Deducible Voluntary Contributions account, when I reach the age of 60 and declare retirement. Therefore they behave like a pension scheme, one is mandatory while the other is voluntary. The HK MPF was related to my previous employment and would benefit from the Double Tax Agreement between Hong Kong and UK. I believe it is free of UK tax on withdrawal. On the other hand, the 'Tax Deducible Voluntary Contributions' will be subjected to UK Tax on withdrawal, because it is voluntary. Unfortunately I suddenly remember there may be tax implication in switching the funds. Here are my queries: 1. Do I need to worry about capital gain tax when I switch funds inside my HK 'MPF account'? 2. Do I need to worry about capital gain tax when I switch funds inside my Hong Kong 'Tax Deducible Voluntary Contributions account'? Do I need to report these to HMRC in my coming tax return for 2023/2024? 3. Am I correct in saying that any gain in the 'Tax Deducible Voluntary Contributions Account' will be subject to UK income tax in the year that I take out the money? 4. For 'Tax Deducible Voluntary Contributions Account', the statement will show the total amount that I contributed in the past since inception of the account, and the total gain or loss since inception of the account. Will these information be sufficient in calculating my gain from the account and thus the income tax, when I decide to take out the money after 60 of age? Instead of considering each of the individual funds inside the account under the scheme. Sorry for my long-winded questions. Thank you very much for your help. Kind Regards, Alex Lam
Posted Mon, 04 Dec 2023 15:20:00 GMT by HMRC Admin 8
We can only provide general information / guidance in this forum.  
For an answer to a detailed question of this nature, you would need to contact our self assesment helpline on 0300 200 3310, or seek professional advice.
Thank you.

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