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Immigration Guide for Hong Kong Residents Relocating to the UK
The UK immigration system has undergone recent changes, and it is important to stay informed to ensure compliance and maintain your property ownership rights. This guide will provide you with a brief overview of the key visa options for individuals from Hong Kong, to consider.
| SHORT TERM | LONG TERM |
| Currently Hong Kongers do not require a visa to enter the UK for short-term stays for purposes such as tourism, leisure or business. However, the UK electronic travel authorisation (ETA) for Hong Kong travellers will become a mandatory requirement in late 2024, when the official launch is expected. | Hong Kongers who plan on visiting the UK for the long term or with the intention to settle in the UK will need a visa specific to their needs.The well-known BN(O) visa route is clearly very attractive but there are still many other immigration options available for Hong Kongers who are not eligible or who do not wish to apply under the BN(O) visa route. |
Is There A ‘6-Month In 12 Months’ (Or 180 Day A Year) Rules?
This is the most common immigration myth, and you may be pleased to know that there is actually no such rule. There is no specified maximum period in the immigration rules that an individual can spend in the UK as long as each visit does not exceed the maximum period for that visit, normally 6 months. However, if it is clear from your travel history that you are seeking to remain in the UK for extended periods or making the UK your home, the entry to the UK will be refused. This is because longer periods of stay in the UK comes with a rebuttable presumption of ‘non-genuine visit’. Nevertheless, spending over 183 days in the UK in any tax year may trigger UK tax residency.
Are You An Innovative Entrepreneur?
Innovator Founder visa opened in April 2023, designed for individuals who wish to set up and run a UK-based enterprise, without the need to show any initial capital to invest in the business and allowing you to take employment alongside running your own business. A key requirement is that you must be endorsed by a Home Office approved endorsing body who will then assess your business in the aspects of innovation, viability, and scalability. Therefore, a meticulously researched and well-structured business plan is crucial for the application and we, Quastels LLP, has a track record of securing endorsements for game-changing ventures, like a recent beverage company leveraging the metaverse and NFT tech.
Do You Have A Job Offer From A UK Business Partner Or Work Closely With A UK-Based Business Partner?
The UK’s main work visa route is called Skilled Worker visa, which is under a sponsorship system. This means you cannot simply apply for this visa unaided and securing a job offer from a UK business is a prerequisite for this visa route.There are currently over 61,153 licence holders in the UK but you may not be aware that any UK employer who is a legitimate business trading in the UK is eligible to apply for a sponsor licence, including a one-person business. Therefore, although the Register of licenced sponsors list is an extremely helpful tool to look for visa sponsorship, don’t limit yourself to any possibility.
Is Your Company Looking To Expand To The UK?
Global Business Mobility visa provides five pathways for overseas firms to establish a UK footprint or transfer staff to the UK. If you own or are employed by an overseas company, this visa allows you to enter and work in the UK as a representative of your company, then potentially be sponsored by the UK establishment and switch into the above-mentioned Skilled Worker route.
Are You A Talented And Promising Individual?
Global Talent visa is one of the most interesting types of visas as it covers a wide range of industries such as science, research, engineering, humanities, social science, medicine, architecture, digital technology, arts and culture, fashion, film, and television.
The most complex part of the process is to get endorsed by a Home Office approved endorsing body who will assess your career history including your international standing, the significance of your work and the impact of your activity in a company or as an individual. Each endorsing body has very different criteria and so it is crucial that you thoroughly read and understand their specific assessment criteria.
Are You Aged 18 To 30?
Youth Mobility Scheme visa is designed to enable people aged 18-30 to live and work in the UK for two years. It is straightforward to apply for, however, you should be aware that there is a cap of 1,000 places for Hong Konger and you must be selected in the ballot, which is typically opened in January and July each year.
Are You A Graduate Of Chinese University Of Hong Kong Or University Of Hong Kong In The Last 5 Years?
High Potential Individual visa allows recent graduates of a top global university to live and work in the UK without any sponsorship for two years (or 3 years for PhD or other doctoral qualification), which means you will not be tied to a particular job, you can be employed or self-employed.
Are You Looking To Join An Internship Programme In The UK?
Government Authorised Exchange visa is for individuals who want to come to the UK for a short time for work experience for up to 12 months or to do training, research or an Overseas Government Language Programme for up to 24 months.
Finally…
Owning to the UK’s colonial history with Hong Kong, you may want to explore whether you have a claim to British citizenship under the British Nationality (Hong Kong) Act 1990.
For example, if one of your parents were granted British dependent territories citizenship by the Hong Kong government between January 1983 and June 1997, amongst other ways to potentially qualify through a British parent, ancestor or colonial connection.
Conclusion
Changes to the Immigration Rules in recent years have created many new opportunities for people to relocate to the UK.
However, navigating the UK visa system can be complex and the Immigration Rules contain strict requirements.
Consulting with an experienced immigration lawyer at Quastels LLP is crucial to ensure you understand the most appropriate visa options and comply with all legal requirements. Our team is here to guide you through the process and provide tailored advice based on your unique circumstances.
To discuss any of the points raised in this article, please contact Cheryl Ma or fill in the form below.
SDLT | Buying A UK Property From Abroad
Residential property in England is often purchased by overseas residents. Whether you have children studying in the UK or require a base for when you are in London on business, it is comforting to know that buying a UK residential property is relatively straightforward.
You do however need to be aware of Stamp Duty Land Tax (SDLT) which has become more complicated in recent years. The rates for overseas buyers or those who already own a home are different from the amount charged to first home buyers or those replacing their main home.
In this article, I set out what overseas buyers should know about SDLT when purchasing a residential property in England.
What Is Stamp Duty Land Tax?
SDLT is a tax that is payable on the purchase of the property. It is a form of property transfer tax and is paid by the buyer, not the seller. The amount of SDLT depends on the purchase price of the property. It is a one-off payment that must be made within 14 days of you completing your purchase.
SDLT rates are structured in a tiered fashion, meaning that different portions of the purchase price are taxed at different rates. At the time of writing, the basic SDLT rates for residential property purchases in England are as follows (with the potential additional rates):
What Is The SDLT Rate For Overseas Buyers Of Residential Property?
If you are not a UK resident, you must pay an extra 2% tax on the property you purchase. This equates to an extra £20,000 on a £1 million property. The total rate combined with the basic rate of SDLT is shown in the table above.
You will be classed as a non-resident if you are living outside the UK 183 days in the year before completion. It makes no difference if you have permanent residency status or a British passport. You will be treated as ‘resident’ for SDLT purposes even if your stay in the UK is temporary, as long as you spent the 183 days in the UK in the immediate year before completion.
For high-net-worth and ultra-high-net-worth individuals, who travel extensively, the 183 days trigger is a crucial factor to keep in mind if you are planning to purchase a property in England.
If you don’t quite make up the 183 days before completion, you can claim a refund of the 2% payment if you spend 183 days out of a period of 365 days in the UK by the time of the first year after your completion date.
I Live Overseas And Own Properties In Other Countries. Will I Pay More SDLT On My Property Purchase In England?
Unfortunately, if you own another residential property anywhere in the world you will be charged an extra 3% SDLT. The total rate combined with the basic rate of SDLT and the overseas surcharge is shown in the table above. On top of the £20,000 non-resident increase, your £1 million property will therefore cost an extra £50,000 on top of the basic rate.
What If I Am Selling My Main Residential Property?
The further 3% additional property rate is not intended to penalise people moving home. If you are making the purchased property your principal home, and have already sold your previous main home (or sell it on the same day as the purchase), then the 3% will not be payable.
It often takes time for high-value properties to sell. If you do purchase a second property while your main home is still on the market, then you can apply for a refund on the 3% extra SDLT you paid when you eventually complete the sale, provided that you manage to sell it within 3 years.
I Heard That It Could Be Tax Advantageous To Buy The Property In A Company Name
If you are purchasing a property for rental income, then there may be income tax advantages in holding the property in a company, but if the property is to be occupied by any family members then SDLT rates are penal.
Purchases by a company which are not for rental purposes are charged at the full rate of 15% on the total purchase price, and, if any of the owners of the company are non-resident, this will increase to a rate of 17%. In addition, an annual SDLT charge, known as ATED, is payable based on the purchase price of the property if not used for rental purposes.
Closing
Purchasing a property in England from overseas can seem daunting, but an experienced Solicitor will be able to guide you through the process and ensure your best interests are protected.
At Quastels there are also expert tax and immigration solicitors to assist you in your investment in the UK.
To discuss any of the points raised in this article, please contact Jonathan Neilan or fill in the form below.
This article is not legal advice.