GCT on overseas earnings

[spannermonkey]

Hello all,

I've been out of the UK, living in Hong Kong for 6 years and do not spend more than 2 weeks of a given year in the UK. I have a flat in the UK which I rent out, and pay UK tax (albeit very little) on rental income after expenses and allowances.

In Hong Kong, I have two flats which I currently rent out and pay Hong Kong tax on rental income and expenses. Surplus cash from the rental of both Hong Kong flats is converted to Sterling and transferred to my UK bank account, for sterling savings, or UK flat mortgage pay down.

I personally live in a rented flat in Hong Kong.

In the next year or so, I plan to sell both the Hong Kong flats and the following year, move back to the UK.

The funds I will be repatriating, will be both cash saved from my regular salary and the proceeds from both the Hong Kong flat sales (the latter of which may or may not be subject to profits tax, which is Hong Kongs version of CGT).

Once I move back to the UK with these funds, will these funds be subject to UK CGT?

thanks

[Peter D]

If you dispose of the flats whilst still being non UK resident then there will be no UK CGT. Your UK non residence is a matter of fact but did you also complete a P85. Regards Peter