# Uk and HK tax....



## Ljf1aber (Mar 3, 2013)

Hi all

Am new to the expat world and am trying to get my head around the DTA between the UK and HK: any help you can offer will be greatly received!

In August I will be moving to Hong Kong to teach. My sister will move into my home and pay a 'peppercorn' rent of £2400 per annum. I imagine I will return to the Uk for approximately 60 days per year. I am also an examiner and earn approximately £4500 for the marking I undertake. Am I right in thinking that with the DTA between the UK and HK:

* I will pay tax on my HK income in HK and not be liable for double taxation on this in the UK?
* my rental income and exam marking (£6900) will be liable to UK tax, but will be covered by my annual personal allowance? I will just need to file an annual tax return? Again, this will not be liable to double taxation in HK?

Many thanks once again for any help you can give.


----------



## nikkisizer (Aug 20, 2011)

Ljf1aber said:


> Am I right in thinking that with the DTA between the UK and HK:
> 
> * I will pay tax on my HK income in HK and not be liable for double taxation on this in the UK? - Your income from Hong Kong will need to be declared on your tax return but this will be covered by the DTA
> 
> ...


Hello Ljf1aber,

Please refer to my comments above in blue.

Also, the existing HMRC UK residency rules are set to change with effect from the 2013/2014 tax year which will involve the statutory residency test (SRT). 

Various tests are performed to see if you have ties such as home, work, family etc. in the UK which may well class you as UK resident for tax purposes regardless of where you reside. 

If classed as UK resident under the new (SRT) you would then be taxed on your worldwide income so it is very important that your individual circumstances are dealt with correctly to protect your residency status and exposure to UK taxation.


----------



## Ljf1aber (Mar 3, 2013)

Thank you very much for your reply: really useful.

I have a feeling that my planned arrangement would make me tax resident in the UK according to the SRT. If so, would I be taxed on my HK income in the UK too, or will the DTA cover me here? In other words, I have no problem paying UK tax on my UK income and HK tax on my HK income, but don't want to pay twice!

Many thanks for any help you can give


----------

