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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am a UK citizen. I have a consultancy business that I practice

Customer Question

I am a UK citizen. I have a consultancy business that I practice in Asia. The business is registered as an Hong Kong offshore business and I bank in Hong Kong. I invoice my clients my daily rate gross and pay no tax at the client end, it all arrives at my HK business and my HK bank account tax free (well, I sometimes pay a tertiary 3-6% invoice tax, depending on the country.

When im based in the UK (not working), am I allowed to purchase a house, cars etc in the UK?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

 

There is nothing to stop you owning property or other assets, cars etc in the UK but if you want to remain non-UK resident for tax purposes, assuming you already are treated as such, you need to restrict the number of days that you spend in the UK. The number of days varies depending on your circumstances and the number of defined ties that you have to the UK.

 

You can read about the statutory residence test here:

 

http://www.hmrc.gov.uk/international/rdr3.pdf

 

A briefer and more accessible guide is here:

 

http://www.shipleys.com/resources/issue/statutory-residence-test

 

There are some very easy to use flowcharts here:

 

http://www.shipleys.com/resources/issue/statutory-residence-test-flowcharts

 

I hope this helps but let me know if you have any further questions.

Customer: replied 2 years ago.

Hello,


Can I ask a few more questions?


 

Expert:  TonyTax replied 2 years ago.
Of course, you can.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15840
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

I have bank acc in HK that is my business account, can I transfer funds from that to my UK accounts without paying tax? Or bank managers asking questions, like GBP10k a month say for example?


 

Expert:  TonyTax replied 2 years ago.

You can operate a bank account in the UK and transfer funds to it and not pay tax on it so long as you are treated as not UK resident. The fact that you may have a UK bank account in the UK does not mean your business is run from the UK.

 

I'm not a banking expert. However, the banks do have money laundering rules and a sudden influx of substantial sums into a bank account may prompt questions from the bank about the provenance of the money so you should be ready to prove your credentials. I tell people to contact the bank in advance of a substantial deposit and to discuss their procedures. A little knowledge can save delays in accessing your money later on.

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