Under new rules Britons abroad will be subject to a standard 18pc capital gains tax
Recent tax changes in Britain may bring smiles to the faces of British expatriates in Hong Kong with homes in their mother country. But Hong Kong residents living or working in Britain may be less pleased.
The Chancellor of the Exchequer, Alistair Darling, announced in his pre-budget report on October 9 that capital gains tax (CGT) would be charged at a standard rate of 18 per cent from April next year, with the upper and lower rates abolished.
British expatriates living and working abroad are charged capital gains tax on the growth in value of their British home while they are overseas.
Under the old system, they might have paid as much as 40 per cent tax on the rise in value if they were overseas for a short time, say one year while those who lived abroad for 10 years or more would have paid at least 24 per cent.
'For returning expats who own UK property and have been away for a prolonged period, the CGT changes will be beneficial,' said Lucian Cook, director of research at estate agents Savills.