Family Business Abroad

[Tango888]

Hi everyone,

Looking for some tax advice. I am uk domicile and work and pay tax here. I also have family in Hong Kong. My grandfather, when he was alive, built a portfolio of property in HK which the family company receives a decent annual rental income. Tax etc is paid by the company.

My queries are as follows:
1. My uncles are wanting to split the net cash received amongst the family on a monthly basis, so I'm wondering if that would be taxable?
2. If it is seen as a monthly gift, does that make this money exempt?
3. Lastly, I need to do self assessment tax return, do I need to declare this gift/income? And what back up do I need to go down the gift route?

Thanks for your help in advance.

Tango

[pawncob]

How is it paid to you? Is it a dividend? Do you have shares in the company? Do your uncles? Are they gifting the money to you or are you entitled?

[Tango888]

Thanks for replying. Not entirely sure to be honest. Cash is distributed to family after expenses, so I presume that is classed as dividends? I see it more as a gift or inheritance, is there a test I can go through to determine this?

My uncles will be paying cash to my HK bank account but obviously not if I have to pay tax.

Tango

[pawncob]

Ask them the relevant questions.