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Chinese Ultra-High-Net-Worth Individuals must plan carefully or face hefty penalties from the Chinese and UK tax authorities

Chinese Ultra-High-Net-Worth Individuals (UHNWIs) could face hefty penalties from the Chinese and British tax authorities without thorough tax planning.

Travis Lee, Partner and member of Blick Rothenberg’s China Business Group, said:

The Chinese tax authorities have started to place a strong emphasis on enforcing compliance and collecting taxes on Chinese UHNWIs overseas income.

The UK Government has also announced a number of potential changes to its non-dom regime, including an inheritance tax crackdown. The existing remittance basis which non-dom relies on to protect overseas income being taxed in the UK will also be abolished and replaced by a new scheme.

The implementation of the Common Reporting Standard (CRS) has significantly enhanced global tax transparency and collection efforts. Both the Chinese and UK tax authorities are increasingly using CRS data for tax investigations. Meaning Chinese UHNWIs who are not thorough with their tax planning and compliance could face double taxation issues, and a hefty tax penalty from both the UK and Chinese tax authorities.

Chinese families with multi-generational wealth must be especially careful when they review and develop their tax mitigation strategies. They need to navigate their international presence, assets, and obligations as the global economy, regulatory frameworks and information exchange protocols rapidly evolve around them.

Travis added:

I am thrilled to join the China Business Group and embark on this new journey with Winnie Cao, Head of the Blick Rothenberg China Desk and the rest of the groups talented team. I have 18 years of experience at a Big Four firm in mainland China and Hong Kong and the pedigree of advising UHNWIs with international presence.

The Blick Rothenberg China Business Group specialises in providing tailored services for clients from mainland China and Hong Kong to deal with the complex world of UK, Chinese and Hong Kong taxation. We support clients in areas including UK pre-immigration, wealth management and business expansion advice.

We aim to provide exceptional service to private clients and corporations with connections to the UK from a global perspective with a UK regional emphasis, ensuring their family succession and wealth management strategies are as robust and forward-thinking as the world we live in.

Would you like to know more?

If you would like to discuss any of the above, please speak to your usual Blick Rothenberg contact or Travis Lee using the form below.

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Travis Lee
Travis Lee
Partner
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