Alex Lam

Dear Sir/Madam, Hope this message finds you well. I bought several US Mutual Funds several years ago, and kept them in my offshore bank account in Singapore. May I ask the following: 1. I sold these US Mutual Funds in September 2024, with a net gain. How should I report these gains in self assessment to HMRC? Should I fill in the Capital Gains Tax Summary (SA108)? 2. I have received dividends from these Mutual Funds. Should I fill in the 'Dividends from foreign companies' in the Foreign page (SA106) to report these incomes? Thank you very much for your help. Kind Regards, Alex Lam

Dear Sir/Madam, Hope this message finds you well. I bought several US Exchange Traded Funds (ETFs) several years ago, and kept them in my offshore bank account in Singapore. May I ask the following: 1. I sold these ETFs in September 2024, with a net gain. How should I report these gains in self assessment to HMRC? Should I fill in the Capital Gains Tax Summary (SA108)? 2. I have received dividends from these ETFs. Should I fill in the 'Dividends from foreign companies' in the Foreign page (SA106) to report these income? Thank you very much for your help. Kind Regards, Alex Lam

Dear Sir/Madam, I bought 2.325% (coupon rate) Royal Bank of Canada corporate Bond at a price of CAD$97.967 on 15 March 2023. It will mature on 2 July 2024, with CAD$100 to be paid back to me at maturity. I sold the corporate bond at a price of CAD$99.792 on 31 May 2024, before the maturity date. It gave a gain of CAD$1.825 per unit of the bond. As it is a Canadian corporate bond, may I ask will the gain be taxed as a UK capital gain tax or income tax? Also in which part of the self assessment or which form should I use for entering the details of my transaction and gain? I understand that I need to convert the CAD into British Sterling before calculation, using HMRC monthly exchange rate. Thank you very much for your help. Kind Regards, Alex Lam

Dear Sir/Madam, I bought 3.125% (coupon rate) Microsoft Corp Bond at a price of US$97.865 on 15 March 2023. It will mature on 3 November 2025, with US$100 to be paid back to me at maturity. As it is a US corporate bond, may I clarify the following: 1. If I leave the bond to mature on 3 November 2025, will the gain be taxed as UK income tax or capital gain tax? 2. If I sell or redeem the bond earlier, say 3 months before maturity, will the gain be taxed as a UK capital gain tax or income tax? 3, In which part of the self assessment or which form should I use for entering the details? I understand that I need to convert the USD into British Sterling before calculation, using HMRC monthly exchange rate. 4. Will this corporate bond be considered a 'deeply discounted security'? Thank you very much for your help. Kind Regards, 

Name removed admin 

Dear Madam/Sir, Thank you for your prompt reply. Please allow me to ask a follow-up question. As I plan to transfer the assets from my own solo account to a joint account with my wife, in case we dispose of the funds in future, both of us (my wife and I) will be liable to Capital Gains Tax in a 50% / 50% manner. Is my understanding correct? Thank you very much for your help. Kind Regards, 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

Hello, I have a question about transfer of investment mutual funds. My wife and I come from Hong Kong and are currently tax residents in the UK. I have a solo bank account in Singapore, as well as a joint account with my wife in the same bank. We are living in the same place in the UK. I plan to transfer 4# investment mutual funds from my own solo bank account to our joint account with my wife. May I ask will there be any tax implication, e.g. CGT, in doing the transfer? Do I need to report the capital gain or loss in the 50% of each investment mutual fund transferred to my wife? After the transfer of the mutual funds to our joint account, do I need to report this in my tax return next year? Furthermore, according to HS281, 'If you and your spouse or civil partner are living together, any transfer of an asset between you is treated as giving rise to neither a gain nor a loss to the person transferring it. Any amount actually paid is ignored. If the person receiving the asset later disposes of it, they will be treated as if they had paid an amount equal to the total of your costs.' May I ask does the 'asset' mentioned above also include shares and investments (like investment mutual funds in my case)? Thank you very much for your help. Kind Regards, Alex Lam