Tax when working abroad

Higgie77

I was wonderijng if anyone could help guide me?

My self and my partner are moving abroad in a just under a month to Hong Kong for approximatley 2 years.

We have savings that we want to add to, so that we can put a deposit down on a house in the the future [ie 2 years. time] when we return to the UK.

If we earn abroad, are we liable to pay any additional tax in bringing savings back into the UK on our return?

We are finding difficult to find any advice on our situation so was wondering if anyone here could help?

Many thanks,

Tom

Dave101t

good idea to go for april, thats the tax year for hm revenue. you wont le liable for any uk income tax, and savings are yours to transfer as you please.

i was in dubai for 1 year, but only dec06 to nov07 so they tried to tax me on the full amount but i argued and got my 5900 quid bill reduced to 991 from a previus year.

i transferred money from my dubai account in around 2000 pound lots to the uk, just the transfer fee (4 quid) and exchange rate to contend with. hope this helps.

JayZed

Dave101t wrote: »

good idea to go for april, thats the tax year for hm revenue.

Sorry, but in fact leaving shortly after 6 April is the worst thing you can do in terms of the time it takes to attain non-resident status. You need to be outside the UK for one full tax year (6 April - 5 April) to be eligible for non-resident status. If you don't leave the UK until after 6 April 2009, you will have to remain overseas until after 5 April 2011 to attain non-resident status. You can come back to visit the UK for up to 90 days each tax year, but if you return here to live before 6 April 2011 your HK earnings will be UK-taxable.

But in answer to the original question, don't worry, you will not have to pay any UK tax to repatriate your savings to the UK (though as Dave says your bank(s) will charge fees and you may be vulnerable to exchange rate fluctuations).

fengirl_2

But you will get credit for any HK tax paid.

Cook_County

You may be subject to CGT if you save in a currency other than Sterling that appreciates against Sterling.