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Showing posts from March, 2016

Considerations for HK/SG Residents investing in UK Real Estate

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·Dividends – oFrom April 2016 the Dividend Tax Credit will be replaced by a new tax-free Dividend Allowance. oThe Dividend Allowance means that you won’t have to pay tax on the first £5,000 of your dividend income, no matter what non-dividend income you have. oYou’ll pay tax on any dividends you receive over £5,000 at the following rates: §7.5% on dividend income within the basic rate band §32.5% on dividend income within the higher rate band §38.1% on dividend income within the additional rate band §Personal Allowance: £11,000 §Basic Rate Limit: £32,000 §Higher Rate Threshold: £43,000 §Additional rate band: Over £150,000 oNote wording of the treaty - 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed: §(a) 5 per cent of the gross amount of the dividends if the beneficial owner is a c…

The IRS vs Singapore - from the SBR

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State Tax Guide for American Expats

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The IRS vs Singapore

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The Internal Revenue Service sought to make UBS Group AG turn over records on an account in Singapore held by a U.S. citizen, setting up a showdown with the city-state over its bank-secrecy laws and potentially opening a new front against offshore tax evasion beyond Switzerland.
The IRS asked a federal judge in Miami to force UBS, the largest Swiss bank, to produce documents on Ching-Ye Hsiaw, who lives in China. The judge on Wednesday told UBS to show up in court on March 31 to explain why it has refused to supply the account records. “They’re holding UBS hostage in the U.S. by saying you subjected yourself to U.S. jurisdiction, now produce these records outside the U.S.,” said Jeff Neiman, a former federal prosecutor. “It’s setting up a showdown of Singapore secrecy versus the U.S. need to enforce its tax laws.” UBS spokesman Gregg Rosenberg declined to comment on the case immediately. Hsiaw couldn’t immediately be reached for comment. The U.S. has focused largely on Switzerland in…

Passport Power

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Tax Planning for UK Investments - Capital Gains Tax

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   What is CGT oCapital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.  It’s the gain you make that’s taxed, not the amount of money you receive. oS 1(2) of TCGA 1992 says that CGT is charged where §A chargeable person who makes §A disposal of §A chargeable asset, leading to §A chargeable gain · Reliefs and exemptions oAnnual exemption for indiv of 11,100 oEntrepreneurial relief oPRR oS39 TCGA 1992 requires the exclusion from allowable capital gains deductions of amounts which are: §allowable in computing profits or losses of a trade etc for the purposes of Income Tax, or §allowable in computing any other income etc for the purposes of Income Tax, or §even though not so allowable in computing losses, would be allowable but for an insufficiency of income etc. §The result of these provisions is that an Income Tax charge must always take priority over a Capital Gains Tax charge. You should always consider and discard liability to Inco…

Tax Planning for UK Investments - Stamp Duty

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S.42 of Finance Act 2003.  You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland.
·The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.·SDLT no longer applies in Scotland. Instead you pay Land and Buildings Transaction Tax when you buy a property.

You pay the tax when you: ·buy a freehold property·buy a new or existing leasehold·buy a property through a shared ownership scheme·are transferred land or property in exchange for payment, eg you take on a mortgage or buy a share in a house

Rates - How much you pay depends on whether the land or property is: ·residential·non-residential or mixed-use·You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay. (There’s a different calculator for leases.)You may be able to reduce the amount of tax you pay by claiming relief, eg if you buy more than one pr…