Tax implications to bring in foreign property sale under non-dom

[sunhk]

Hi, my wife and I were born in Hong Kong (HK). Now we both have been working in UK for over 30 years holding UK passport. We have an adult son who was born in UK. Ten years ago we mortgaged our UK property to buy a property in HK for retirement. We believe that we are non-dom status. During this period, we let the HK property out and paid the local tax, however we did not bring any rental income in to UK. As I become too ill recently to retire in HK, we now want to sell the property in HK and would like to bring the sale proceeds to UK before April 2017 ( non-domiciled rule disappears). Please tell me what are the tax implications for brining in the sale proceeds in UK?
Would we save any capital tax to sell the HK property before April 2017 and bring in as a saving to UK? What is the best way to bring in the sale proceeds?
Thanks.

Sun

[maths]

You state that you are both non-UK domiciled for UK tax purposes.

Have you been claiming such status on your annual UK Tax Returns?

Have HMRC never queried this status?

It, prima facie, appears that there may be strong arguments that you both have acquired UK domicile status for UK income tax and capital gains tax purposes.

You are both already deemed UK domicile for IHT purposes.

If you are non-UK domiciled and you sell the HK property and remit the proceeds to the UK a UK CGT charge will arise on any gain (measured in £ terms).

However, if you are non-UK domiciled then i assume you have non-UK bank accounts which comprise so-called "mixed funds" and care would be needed to ensure what is precisely remitted to the UK; it may not necessarily be the gain on the HK property.

[bd6759]

If the non-remitted income was more than £2000, you will also have been liable to pay the remttance basis charge. The RBC is substantial. You really ought to seek advice before you do anything else.