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Where Taxpayers and Advisers Meet

CGT as an Expat

Siolag
Posts:1
Joined:Sun Oct 17, 2021 10:20 am
CGT as an Expat

Postby Siolag » Sun Oct 17, 2021 10:42 am

Hi,

I left the UK in Aug 2019 to work full time in China. I was in the UK for almost exactly 6 months in the 2019-20 tax year. However, I have not been in the UK since March 2020. I pay Chinese income tax on my income, my employer then splits the after tax income and sends a proportion to my UK bank account. I have been sending this money from my UK bank account to a cryptocurrency exchange, to invest in such. This has appreciated considerably.

I am confirming the Chinese position, but as far as I can tell at the moment the situation is that as an expat I am only liable for tax on my Chinese sourced income, but I am not liable for Chinese tax (Income or CGT) on any other 'worldwide income.' I believe I am only liable for Chinese CGT on assets within China (property or equities), which I'm not sure covers cryptocurrencies. My understanding is also that as a non-resident, I am not subject to UK CGT as I don't think it comes within any of the general exceptions. Can this really be true that I am not subject to any taxes on these gains in either jurisdiction?

I have been made aware that a UK non-resident for under 5 years can be taxed on the realised gains made on assets held on the day of departure. However, since I purchased these assets after leaving the UK, am I correct in thinking that this exception would not apply to me if I was to dispose of these assets prior to April 2022 and return to the UK the following tax year?

I'd appreciate any and all general advice. The amount is considerable, so I would also appreciate pointers as to where to get professional advice about this as I really have no idea where to look for reasonably priced advice.

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