Concrete Analysis | A smart way for newly arrived Hongkongers to pay the UK’s global tax
- Hongkongers looking to start afresh in the UK following the sale of their property have to contend with a complex tax system
- The taxes include a capital-gains tax of up to 28 per cent on property and as much as 18 per cent on other assets
Two years into the Covid-19 pandemic, Hong Kong International Airport – once one of the world’s busiest – is a former shadow of itself. These days, it mostly shows Hongkongers and long-term residents bidding a tearful farewell to the city they have always called home.
Those who have left have established a new life abroad, going about their daily business in their new place of residence. And with reality soon kicking in, they find life challenges are no different anywhere else.
Newly-arrived Hongkongers in Britain, for instance, will quickly face a brutal, complex tax system, especially for those seeking to sell an old flat to fund a new life.
This includes a capital-gains tax of 18 to 28 per cent on property, 10 to 18 per cent on other assets and 8.75 to 39.35 per cent on dividend income above £2,000 (US$2,510), to name a few.
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Hong Kong migrants to UK struggle to adapt, many willing to accept lower pay and job changes
The good news is that the UK grants a grace period for fresh immigrants. If you sell your Hong Kong property within nine months of arrival, the profit is exempted from capital gains tax.
