Jason Chan
Joined: 7/26/2024
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When to become a UK tax resident, pension taxation, and capital gains tax issues.
Hi Our family relocated to the UK from Hong Kong through the BNO Visa. The visa approval date is 2023-10-27. Our family entered the UK on 2024-04-20. We started renting a property on 2024-04-29, with a lease term of one year. We did not have any employment after arriving in the UK until 2024-06-01, when my wife started working remotely for a Hong Kong company. Her salary is paid in Hong Kong dollars and deposited into her Hong Kong account. We would like to inquire about the following issues: 1. From which date do we become UK tax residents and need to declare our income for tax purposes? 2. After our arrival into the UK, my wife and I each receive a Provident Fund, a Pension Scheme from the Hong Kong Education Bureau, which transferred to our Hong Kong bank accounts on 2024-05-03 and 2024-05-17, respectively. Under UK/Hong Kong Double Taxation Treaty, pensions arise in Hong Kong are taxable only in Hong Kong. Therefore the above-mentioned pensions do not subject to UK tax. Please confirm if my understanding is correct. 3. My wife sold a commercial property in Hong Kong on 2024-04-12, and received a Hong Kong Dollar cheque in her name on the same day. This cheque was deposited into her Hong Kong account on 2024-06-13. Since the property was sold before our entering into the UK, even though the cheque was deposited after our arrival to the UK, it does not subject to the Capital Gain Tax in the UK. Please confirm if my understanding is correct. Many thanks