HMRC Admin 25 Response

Hi Carolyn gong,
If claiming the remittance basis and you haven't transferred any of the funds then no capital gain page is required in the year of the sale.
Please refer to further guidance here:
Paying tax on the remittance basis (Self Assessment helpsheet HS264)
Thank you. 

Hi Trinity Nichols,
The basic Capital Gains Tax (CGT) rules that apply to share reorganisations are:
The issue of any new shares is not treated as an acquisition.
The loss or alteration of any old shares is not treated as a disposal.
Because a share reorganisation is not treated as an acquisition, any new shares of the same class that you receive are added to the holding for which they were issued.
Please see guidance here:
HS285 Share reorganisations, company takeovers and Capital Gains Tax (2023)
Thank you. 
 

Hi A F,
You will need to review the guidance on residency at RDR3 and take the statutory residence test.
The outcome of those tests will determine the action to be taken.
RDR3 Statutory Residence Test
Uk resident for the whole tax year and split year treatment does not apply.
Declare your world-wide income on a self assessment tax return (include the work carried out in Hong Kong as a note at box 19 of TR7).
UK resident for the whole tax year and split year treatement does apply.
Declare your world-wide income on a self assessment tax return (include the work carried out in Hong Kong as a note at box 19 of TR7).
Complete and submit SA109 along with the main tax return, to claim split year treatment and personal allowances.
UK not resident for the whole tax year.
Declare your world-wide income on a self assessment tax return.
Complete and submit SA109 along with the main tax return, to claim not resident and claim personal allowances.
Thank you. 

Hi bobby88668,
That is correct, no need to declare.
Thank you. 

Hi Edmond Lo,
1. It is not liable to UK inheritance tax but you may wish to check the laws of Hong Kong.
2. That is correct.
3. There is no tax consequence of the cash gift but any interest or dividends that this then generates is liable to income tax.
Thank you. 

Hi peter chan,
We would need more information on the company's dealings.
Are they registerd for Corporation Tax(CT) and do they rerquire to pay CT or carry any trades in the UK, for example.
Thank you. 

Hi RichG63,
Thank you for your question.
The normal legal and professional fees incurred on the renewal of a lease are allowable as an expense if the lease is for less than 50 years.
But any proportion of the legal and professional costs that relate to the payment of a premium on the renewal of a lease are not deductible.
If the lease is for over 50 years, the expense then becomes a capital cost.
More information can be found at:
PIM2120 - Deductions: main types of expense: legal and professional costs
Thank you. 
 

Hi soconfused,
Thank you for your further question.
I would advise you that if the rental property is held with your sister (and not your spouse or civil partner) then the declaration of trust would not have to be drafted/witnessed by a Solicitor and could be created by yourselves.
However you may wish to use a conveyancing solicitor to ensure that the deed has been drafted in the correct format and will stand in a court of law if required in the future. 
Thank you. 

Hi Emma G,
If the contracor is using these services himself then they will not be classed as disbursements and so 20% VAT would need to be added to the recharges.
Please see the guidance here:
25.1 Disbursements for VAT purposes
Thank you. 

Hi Dm0245,
If these are geniune business expenses and you reimburse receipts that show this then you do not need to report or tax these expenses.
Thank you.