Hong Kong Family Land Sale - UK Tax?

by **wezza** on Wed Nov 16, 2011 11:56 pm

Our family have some land in Hong Kong that developers are interested in purchasing. It was given to our family by the government over there many many years ago.

My mother (retired) and I (tax payer) are both UK dom. She has said that if the sale goes ahead, the money would go into her bank account in Hong Kong and she would like to give us about £80k to go towards buying a house here in the UK.

1) Is income tax or CGT tax relevant here for me or her, or any other tax for that matter?
2) If she kept the money in Hong Kong (she visits often) would it be subject to UK tax?

Thanks in advance.

by **maths** on Thu Nov 17, 2011 1:10 am

Are you definitely sure that you are each UK domiciled ?

How long have you each been UK resident ?

Is the land in the names of the members of the family in the UK ?

by **wezza** on Thu Nov 17, 2011 7:14 am

Yes to all.
I was born in the UK, mother was born in Hong Kong but lived in UK over 35 years.

by **wezza** on Thu Nov 17, 2011 7:16 am

It was transferred over to my name (gift) from my father when I was younger (over 10 years ago). He passed away 3 years ago. Not sure if there is an inheritance tax due if it is sold or was due back then?

by **maths** on Thu Nov 17, 2011 4:21 pm

You appear to own the property 100% (not the family).

On any sale or gift by you CGT will be payable (and possibly IHT).

The gift from your father to you (assuming he was domiciled and resident in the UK at the time) precipitated a CGT liabilty; as he survived 7 years thereafter no IHT arises.