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TaxRobin
TaxRobin, Tax Consultant
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Experience:  International tax
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Hello, a number of questions:1) I currently have a home

Customer Question

Hello, a number of questions:

1) I currently have a home (i own) in the UK, but spent a lot of time in China, where I pay tax: How much time would I have to spend in the UK to qualify as a UK resident so that I can apply for buy to let mortages in the UK?

2) If I move my companies in China/HK to a UK holding company, and I have paid corporation tax in China, presumably I would not have to pay that tax again in the UK?
Submitted: 3 years ago.
Category: Tax
Expert:  Nicola-mod replied 3 years ago.

Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola
Customer: replied 3 years ago.

Hi Nicola,

 

Thank you for your email. Yes I am OK to wait, it might also be better to separate the two questions......... If so you can cancel it and I will 're-ask'.

 

Robert

Expert:  Nicola-mod replied 3 years ago.
Hello,

We will continue to look for a Professional to assist you.

Thank you for your patience,
Nicola
Expert:  TaxRobin replied 3 years ago.
Hello and thank you for using Just Answer and for your patience.
First automatic UK test
1.21 You spend 183 days or more in the UK in the tax year.
Second automatic UK test
1.22 The second automatic UK test is relevant if you have or had a home in the UK during all or part of the tax year.

So your relevant number is XXXXX days in the UK. You would then be a tax resident.
If you use a UK holding company withholding tax on payment of dividends to UK company by the China Company is Nil. China company pays 15% of tax on its profits. However, the official rate is 33%. When these dividends are received by the UK company, they are chargeable to UK tax. However, relief is given for all underlying tax paid in EU on profits, from which dividends are paid and for the official tax payable (in full rate of 33%) in China. The resulting tax credit will leave little or no UK tax liability.
Customer: replied 3 years ago.
Thank you for your reply.

Just to clarify: 1.22 The fact that I have a UK home may make me eligable for UK tax?

The main question I have is "Can I apply for a mortgage (as a UK resident) and claim to be a UK resident based on my current circumstances" (less than 183 days, but ownership and occupation of a house, but not a UK tax payer)"

or

would this be fraudulent?
Expert:  TaxRobin replied 3 years ago.

The ability to apply for a home loan would be up to the bank. Yes, your domicile could place you in the position of taxation in the UK even if you are outside the UK and not there for 183 days.

 

Customer: replied 3 years ago.
Relist: Incomplete answer.
Expert:  TaxRobin replied 3 years ago.
I do not know the lender you would want to use butthere are options for nonresidents.
http://www.offshore.barclays.com/non-resident-mortgage/

The incomplete part of the answer is not tax related.

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