Moving back to UK - minimising tax
Oct 20th 2017, 8:11 am
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Moving back to UK - minimising tax
Hi everyone,
New here and only just found this forum. I'm planning on a move back to the UK and am looking for some advice on how to minimise my tax liability.
Some background information first. I left the UK in 2011 and moved to Hong Kong with a permanent transfer from my company. In 2013, I met my now wife in China and we were married in 2014. I purchased a property in China (in my name) in 2014 and live there part-time (splitting my time between HK and China 50/50). Officially, I'm am employed and a tax resident in Hong Kong with no income in China. My wife purchased a property this year 2017 (in her name) for investment.
My plan is to move back to UK in 2019 with my wife and daughter (british), I intend to transfer back with my company so I don't have any concerns about spouse visa. After we move back, we intend to sell my wife's property to fund a purchase in the UK and rent out my property.
What are the tax implications for selling my wife's property? She will be on a spousal visa and will not be working in the UK. Is there a difference between selling before we move or after we move?
I presume I will need to pay tax on the rental income I receive on my property. Can I claim mortgage payments as an allowable expense?
I don't intend to sell my property but if circumstances change and I need to, would it make any difference if the property was in her name instead of mine? Given that I am a higher rate taxpayer and she will have no income? What about if I transferred the property to my parents who reside in Hong Kong?
Sorry for the long post and all the questions.
New here and only just found this forum. I'm planning on a move back to the UK and am looking for some advice on how to minimise my tax liability.
Some background information first. I left the UK in 2011 and moved to Hong Kong with a permanent transfer from my company. In 2013, I met my now wife in China and we were married in 2014. I purchased a property in China (in my name) in 2014 and live there part-time (splitting my time between HK and China 50/50). Officially, I'm am employed and a tax resident in Hong Kong with no income in China. My wife purchased a property this year 2017 (in her name) for investment.
My plan is to move back to UK in 2019 with my wife and daughter (british), I intend to transfer back with my company so I don't have any concerns about spouse visa. After we move back, we intend to sell my wife's property to fund a purchase in the UK and rent out my property.
What are the tax implications for selling my wife's property? She will be on a spousal visa and will not be working in the UK. Is there a difference between selling before we move or after we move?
I presume I will need to pay tax on the rental income I receive on my property. Can I claim mortgage payments as an allowable expense?
I don't intend to sell my property but if circumstances change and I need to, would it make any difference if the property was in her name instead of mine? Given that I am a higher rate taxpayer and she will have no income? What about if I transferred the property to my parents who reside in Hong Kong?
Sorry for the long post and all the questions.
