[honkkongjohn]

Does anyone know if my wife and I will be better off setting up our rental income from our property in UK to come through a Hong Kong bank account.
I'm thinking of tax reasons, although there wouldn't be any profit as the income won't quite cover the mortgage. Am i right in thinking that if the money came into an HK bank account it would be counted as HK income and therefore less tax?
Any advice much appreciated...

[PDLM]

No - the income would still be liable for UK tax - it is where the money is earned that is regarded as the key factor by most tax regimes (including both the UK and Hong Kong). But if the income doesn't cover the mortgage then you shouldn't be paying any UK tax on it anyway...

[Coolhand]

You can count the interest on the mortgage as an 'expense' but not the capital repayments. Most agents will deduct 22% tax at source, so its best to fill out a non-resident landlord form and send it to tax people in Cardiff - takes about 2 weeks. Of course there are other expenses you can claim to make sure you don't pay tax on your rental income.

I expect the ammount you would pay in transferring rent to Hong Kong would be similar if not more than the tax you would pay.

[honkkongjohn]

Thanks very much to both of you......things are getting clearer in my head! I Love this website...

[chateaux]

I dont think you are going to have tax issues on your rental income at all. however you may wish to think of the best way for your clients to pay you as it is quite costly to make an international transfer. My mother runs a B&B and her biggest problem is getting her clients to pay the deposit due to wire costs.

A good way to receive your income is via www.oz-pay.com, they have HK accounts so a local payment for your prospects. The ex rates offered are a lot better than your high street bank so you will actually save on the conversions (when you make them). Also they have IOM accounts so this may be beneficial from a tax point of view (you would have to speak to a financial advisor about that).

Well hope that helps,

- Brendan

PS- google "oz-pay" for a lot more info.