Britain in Hong Kong May-June 2024

Kathy Lee Head of Research Colliers

Dr Sharmeen Shroff, Clinical Psychologist & Founder, Central Minds EXPLORING THE

Leila Lim, Managing Partner, Asia Pacific, Lim-Loges & Masters

Matthew Curtis, Director, Hong Kong, The Fry Group

CHAIR'S MESSAGE

Dear Members,

If like me, you are thinking that time is indeed flying past this year, perhaps we can collectively take a moment to reflect on some of the remarkable activities and achievements of the past months. We have continued our advocacy work with specific inputs to the HK SAR Governments budget for 20242025. The Budget has been poured over and analysed in various fora and provides many positive actions for the business community We continue to work with Government, the Bureaux and agencies to translate policy into business opportunities and are encouraged to see new arrivals and returnees to Hong Kong Like our community the Chamber has displayed exceptional resilience and adaptability, and I thank each and every one of you for your continued support and contributions and wish for green shoots to become strong branches.

One of the flagship events in the Chambers calendar is our Symposium and this year we held a very lively and highly engaging Diversity, Equity, Inclusion, and Belonging (DEIB) Symposium. This event followed the International Women's Day (IWD) campaign which was once again a resounding success, featuring captivating photos, inspiring quotes, and thought-provoking interview videos from our BritCham members And of course, DEIB is about so much more than gender and we are really pleased to see the actions being taken by companies and individuals to support, what to me is the super important aspect of “inclusivity” where everyone can be their very best

As in the years before COVID, we saw a numerous of visitors arrive to hold business meetings and events around those important dates in our annual event calendar, Art Basel, the Rugby 7’s and others, to support local colleagues. Wonderful traditions to be xxxxx

continued and to be made, and of course the farewell to Hong Kong Stadium for the Rugby 7’s after 30 years of entertainment was a moment not to be missed. New traditions will be made! Many thanks to KPMG for the BritCham & KPMG Rugby 7’s dinner – a celebration of sporting excellence and business connections!

It gives me particular pleasure to note an uptick in our participation in the arts and cultural scene, with our participation in events such as the Design Trust, photography exhibitions at Fortnum and Masons, Art Basel events, Art Central, as well as the Team GB Reception at the Consulate ahead of the Rugby 7’s These events not only showcased our support for creativity but also provided excellent networking opportunities for our members.

In advance of the influx of sporting and cultural visitors we were delighted to host the esteemed Lord Mayor of London Michael Mainelli and the Sheriff of London Bronek Masojada, at a luncheon kindly hosted by HSBC in their magnificent dining room atop their Headquarters. Sadly, the mist rolled in from the South China Sea and the vista was not

evident, it did mean we could all focus on the points of discussion around the diversity of the businesses which make up the City of London, divided somewhat equally among engineering and science, financial services as well as technology and related services

We continue to foster relationships with Governments, including those in the HKSAR and UK, as well as having meaningful exchanges with the China Liaison Office. And in the spirit of collaboration, we are pleased to share that between Hong Kong and China. In a similar view, I am pleased to share that the China-Britain Business Council (CBBC) has announced our former Chair Peter Burnett will be their CEO, taking over from Andrew Seaton who served as British Consul General in HK, and thereafter as the CEO of CBBC Connections will continue!

I would also like to specifically highlight two networking events which are to me the essence of creating an environment for connecting, the first is a networking drink organised for our YNetwork, providing a platform for young professionals to connect, exchange ideas, and foster collaborations. The second is a new member induction networking event, where new members will have the opportunity to meet and network with our existing members,

enabling them to establish fruitful connections within our vibrant business community We look forward to meeting new as well as younger members at these and many other events in the weeks to come

As this will be my last edition of the magazine, I wish to express my sincere thanks to the members of the Chamber, the executive teams past and current, and to all friends of the Chamber – you have been a hugely influential and inspiring part of my life for over 25 years. Over these years I have seen many changes but also the constant of the Chamber being a place where business gets done and networks and friendships are created. At the Annual General Meeting in June, I will hand over the baton as my term concludes, with confidence that the changes we have seen in my tenure will take the Chamber forward in a resilient manner

With deepest gratitude to each and every one of you – too many to name – who have shaped and made the Chamber what it is today, and to those who will shape it going forward.

I encourage each of you to actively engage with our Chamber's activities, committees, and initiatives. Your involvement not only enhances your own professional growth but also contributes to the collective success of our Chamber and the business environment in Hong Kong.

Thank you for being an integral part of the British Chamber of Commerce in Hong Kong Together, we will continue to thrive, adapt, and shape a prosperous future

Ir Dr Anne Kerr Chair

The British Chamber of Commerce in Hong Kong

The Chamber is thrilled to partner once again with KPMG to co-host our annual Rugby Dinner. This vibrant event took place at the Hong Kong Football Club, kicking off right after the final of the world-renowned HKFC 10s Tournament. We were overjoyed to witness a tremendous turnout, all in support of a worthy cause.

The BritCham & KPMG Rugby Dinner serves not only as a celebration of the Chamber and the Hong Kong Sevens but also as a testament to the transformative power of sports in fostering positive change within the local community. This year, we are delighted to raise funds for the Love 21 Foundation and Rugby For Good. We had the privilege of welcoming Robbie McRobbie and Carmel Armstrong to the stage, where they shared inspiring words with the audience.

Our one and only Anson Bailey, serving as the auction MC, played a pivotal role in driving up the donations and deserves special recognition for his vital effort during the dinner. Our heartfelt appreciation goes out to everyone who generously donated through pledges, live and silent auctions. We would also want to thank all of the prize sponsors for their invaluable support in maximising these contributions.

We would like to express our sincere gratitude to our esteemed speakers: Andrew Weir, Paul McComb, and Paul McSheaffrey. It was an absolute pleasure to listen to an outstanding lineup of rugby legends, including David Campese, John Barclay, Ben Gollings, and Ada Milby, as they regaled us with their hilarious stories from their successful careers in the sport.

Thank you to all those who attended, and here's to another year of resounding success for the BritCham & KPMG Rugby Dinner!

Click here to see more photos.

EXPLORING THE “PRECINCT DEVELOPMENT APPROACH” OF NORTHERN METROPOLIS

economic and industrial transformation as well as land development. It is essential for the government to carefully consider strategies to attract high value-added industries and high-tech enterprises to establish a strong presence in the city. Timely action is of utmost importance in this regard. Ms. Bernadette Linn, the Secretary for Development has therefore mentioned in an interview in January 2024 that the government might take reference from successful experiences of Mainland China, for instance Taikoo Li, Xi'an, and consider developing medium to large scale projects in the Northern Metropolis through the “precinct development approach”, with New Territories North New Town, Lau Fau Shan and San Tin Technopole being the potential pilot sites

Contrary to traditional tendering for individual commercial or residential projects, the “precinct development approach” is a tender awarding the formation and development of a comprehensive district-wide area consisting of residential, commercial and government public facilities to a developer, with the developer bearing the costs of the project The development will also be accelerated through public-private partnerships This allows holistic planning at the same time avoiding the case where residents have to be “pioneers” with the lack of commercial or auxiliary facilities after the occupation of residential projects, as seen in new development areas or private projects in the past.

In fact, Hong Kong has a long history of adopting this concept of city operation, including City One Shatin, Discovery Bay and Park Island. As part of the Shatin New Town development's reclamation project, the government issued an open tender, specifying that the developer must complete reclamation works and provide community facilities (such as schools) within a specified timeframe. The latter projects were developed by private developers through land exchange with the government. The Secretary’s proposal, which requires developers to bear the costs of road and public facility construction, shares similarities with terms observed in the government's public land sale program in recent years, albeit on a smaller scale

The application of the “precinct development approach” in the Northern Metropolis large-scale project is certainly capable of accelerating the development process. However, considering the objective, scale and new concept of the development project, it is crucial for the government to carefully consider the qualifications of tenderers during the tender invitation and review process. This includes assessing their relevant experiences and alignment with the development project's vision of industrial transformation and innovative technology development. Such considerations may also serve to attract experienced and high-caliber overseas developers to participate in Hong Kong's development endeavors.

For the collaboration and governance framework, the market environment may fluctuate dramatically during the development of the Northern Metropolis, which is a medium to long term goal Apart from the traditional public-private partnership framework, successful overseas experience in project governance could be adopted in the project, such as applying the BID Model, in which key stakeholders such as key enterprises, local organizations and residents can participate in the planning process in addition to the government-led process of setting strategic objectives For instance, a Steering Committee consists of key stakeholders can be set up to contribute to the planning process in response to market demands and changes One-North, a Singapore innovation district with a scale comparable to San Tin Technopole, is an exemplar of the BID Model

As for the selection of pilot sites, although the Development Bureau is still studying appropriate pilot sites, we believe that the completion of the San Tin Technopole, which will act as a driving force for the development of the new development area, is unquestionably the key, since the objective of the Northern Metropolis is promoting Hong Kong’s industrial transformation as well as deepening the exchange and cooperation in innovation and technology between Hong Kong and the Mainland. Considering the current economic environment, developers might be more conservative when it comes to large scale projects with long development cycles. The government may, however, adjust the land price in accordance with the pilot scheme and market environment, as well as splitting off smaller land units into development phases, to strike a balance between development needs and risks of developers

Kathy Lee Head of Research Colliers

About Colliers

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company With operations in 66 countries, our 19,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients Learn more at https://colliers com hk/

BURNOUTISABOUTYOURWORKPLACE, NOTYOURPEOPLE

ByDrSharmeenShroff,ClinicalPsychologist&Founder,CentralMinds

In today’s fast paced and demanding corporate world, burnout is increasingly on the rise, affecting employees across multiple industries Traditionally, burnout has been attributed to individual factors such as personal resilience or the elusive work-life balance However, a paradigm shift is underway, highlighting that burnout is predominantly a result of workplace factors, rather than individual shortcomings

It is no longer acceptable to simply encourage an employee to practice self-care or blame that employee for not having a healthy work life balance and cite these as the reasons for feeling burnt-out. While strategies like practicing yoga or mindfulness and getting enough sleep and exercise can all help improve an individual’s wellbeing, suggesting these practices are enough to cure burnout is dangerous and negligent.

In 2019, burnout was officially recognised by the World Health Organisation (WHO) as an ‘occupational phenomenon’ Again, proving the point that burnout says more about your workplace, than your people It is an organisational problem that requires an organisational solution

What Is Burnout?

The World Health Organisation (WHO) defines burnout as a syndrome resulting in chronic workplace stress that has not been successfully managed. It is characterised by:

Feelings of energy depletion or exhaustion

Increased mental distance from one’s job, or feelings of cynicism

Reduced professional efficacy

It is a state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress. Burnout occurs when an individual feels overwhelmed, emotionally drained and unable to meet the constant demands of the workplace.

How To Recognise Burnout In Yourself And Others:

Burnout warning signs and symptoms can present as physical, emotional or behavioural The below is not an exhaustive list, but rather some of the most common signs that occur when someone is feeling burnt-out.

Headaches

Stomach-aches / Intestinal issues

Fatigue

Depleted energy

Frequent illness / Lower immunity

Changes in appetite/sleep

Helplessness

Cynicism

Sense of failure or self-doubt

Decreased satisfaction

Feeling detached or alone in the world

Loss of motivation

Reduced performance in everyday tasks

Withdrawal or isolation

Procrastination

Difficulty concentrating

Irritability / Impatience

Using substances or food to cope

The intent of this list is not to diagnose anyone reading this article with burnout, rather it has been included to raise awareness of the signs and symptoms that one might experience if they are feeling burnt-out If you resonate with the majority of these symptoms, use this as an opportunity to reach out and ask for support from a friend, a family member, a colleague or a professional

Workplace Factors That Contribute To Burnout:

Understanding what causes burnout can help organisations better match their policies to the needs of their workforces. The following is a list of workplace factors that increase the risk of employee burnout.

Excessive Workload: When employees have a workload that matches their capacity, they can effectively get their work done, and still have time for rest and recovery When they chronically feel overloaded, these opportunities to restore balance and rest do not exist

Perceived Lack Of Control: When an employee lacks autonomy in their job role, and they don’t have a say in decisions that impact their professional life it can take a toll on their well-being

Reward Or Recognition: If the reward or recognition for an employee’s job doesn’t match the amount of effort and time they put in, they will ultimately feel like the investment is not worth the payoff

Insufficient Support Or Poor Relationships At Work: Having a sense of belonging is necessary for mental health and well-being. This is true at work as much as it is in life. When employees feel part of a community, they are more likely to thrive. The opposite is also true that poor relationships at work can lead to burnout.

Lack Of Fairness: Unfair treatment includes “bias, favouritism, mistreatment by a co-worker or supervisor, and unfair compensation and/or corporate policies,” When people are being treated unjustly, they are more likely to burn out.

Values Mismatch: If an employee highly values something that their organisation does not, their motivation to work hard and persevere can significantly drop

Addressing The Issue:

Often employer attempts at preventing burnout fail because they are band-aids to a larger problem or because employees believe that their leaders don’t care about their wellbeing as much as productivity. Below is a list of several ways that organisations can reduce employee burnout.

Frequently Review Workload and Expectations: Regularly assess and adjust workloads to ensure they are realistic and manageable for each employee. Ensure that employees have the tools and resources they need to get their jobs done successfully.

Empower Employees With Autonomy: Provide opportunities for employees to have a say in decisions and involve them in goal setting and professional development.

Foster A Supportive Organisational Culture: Encourage open communication and collaboration. Create team psychological safety so employees feel safe enough to take risks, to express their ideas and concerns, to speak up with questions, and to admit mistakes all without fear of negative consequences

Promote Work-Life Balance: Don’t expect your employee’s to create this for themselves Organisation’s should offer flexible work arrangements and promote regular breaks Don’t encourage a culture of presenteeism

Invest In Employee Wellbeing Training: Offer resources and initiatives from trained professionals such as accredited counsellors and clinical psychologists The more evidence based these resources are, the more employee’s will benefit

Ask Better Questions: Ask employees what matters to them and what their priorities are. Employees may not have all the answers, but they can most certainly tell you what isn’t working and that is often the most invaluable data.

Organisations play a crucial role in creating a supportive environment that values employee well-being, thereby mitigating the risk of burnout and fostering, healthier, more engaged employees. Recognising burnout as a workplace issue, rather than an individual problem is a crucial step in creating a healthier and more productive work environment. It’s important for organisations to promote strategies like yoga and mindfulness and continue to encourage self-care – they are all invaluable to managing stress and promoting a general culture of wellbeing But when it comes to addressing and preventing burnout in the workplace, remember the responsibility lies with organisations, not individuals We won’t solve anything without first changing workplace culture

Dr Sharmeen Shroff Clinical Psychologist & Founder

Central Minds

About Central Minds

Central Minds is a Hong Kong based private psychology practice offering therapy and corporate mental health training Their Psychologists and Counsellors are passionate about utilising their extensive clinical experience and rigorous academic knowledge to ensure that organisations are taking the necessary steps to safeguard and support better mental health in the workplace

Website: www centralminds hk Telephone: 28136108

THIS MAY, BRITCHAM SUPPORTS:

MENTAL HEALTH AWARENESS MONTH

In the dynamic realm of modern business, integrating sustainability and innovation has become more than a matter of corporate social responsibility – it's an essential strategic element that promises immense potential for economic growth

Sustainable innovation is becoming undeniably crucial in shaping businesses that are well-equipped for the future, especially within the dynamic markets of Asia Pacific. By integrating environmental and social concerns seamlessly with business objectives, many companies have discovered not just the ethical justification but also the economic benefit of such approaches. Yet, for these endeavours to yield maximum gains, they must be systematically embedded into every facet of the business – from conception and production to delivery and lifecycle management – and become an integral part of employee engagement.

The Imperative of Sustainability: Opportunities and Challenges in the Asia-Pacific Region

Asia Pacific is responsible for over half of 2021's global carbon emissions. Yet, amidst these daunting statistics, people in the region are eager to adopt greener and more sustainable lifestyles. Environmental awareness is not some just a fleeting trend but a deep-seated value that many people across various Asian cultures hold, providing significant benefits for businesses that emphasise eco-friendly practices.

However, this transition to green operations presents challenges for businesses in Asia, including diverse regulations, cultural norms, complex supply chains, and high initial costs, which can deter small companies. It requires business leaders and policymakers to carefully balance stimulating economic growth and committing to environmental stewardship Yet, the overwhelming opportunities that sustainability presents to businesses in terms of growth and innovation create enormous advantages for organisations Strategic planning, investment, and a culture valuing sustainability can support businesses through this transition despite the obstacles

Companies that view sustainability as a driver of growth unlock new markets, attract talent, and improve reputation. With this in mind, businesses in the region are seeing it as a strategic necessity beyond just meeting compliance measures. They are increasingly looking at core strategies that align with sustainability and thus enhance and improve their growth and profitability. However, while many recognise the importance of sustainability, few are prepared or knowledgeable regarding implementation. The Boston Consulting Group (BCG) 2022 Annual Sustainability Report highlights the gap between commitment and action, with 80% of companies needing to learn how to innovate towards climate and sustainability goals. This indicates that for companies, bridging this gap is not just a matter of environmental responsibility, but a crucial step towards ensuring their long-term viability and competitive edge in an increasingly eco-conscious market

Companies in the region already harnessing innovation to meet eco-conscious consumer expectations are witnessing some of these benefits, such as improved efficiency and profitability For example, AGS Worldwide Movers, Thailand, has leveraged technology to enhance sustainability, utilising tablets for sales presentations and calculations, which allows for the digitisation of operations, including paperless data and document management Adopting electronic signatures and digital invoice systems exemplifies how innovation can drive both environmental sustainability and business efficiency It illustrates that by integrating sustainability into corporate strategy, organisations can establish lasting business success, aligning the company's impact on society, the environment, and the economy with its goals.

Infusing Sustainability Across the Value Chain

However, what needs to be recognised is that the escalating demand for businesses to adopt sustainable practices is intricately linked to the widespread transformation of value chains This shift towards sustainability encompasses every facet of operations, re-envisioning processes that includes responsible sourcing of materials, energy-efficient production lines, eco-friendly packaging, and logistics that minimise carbon footprints Rather than a mere alignment with risk management or regulatory compliance, this transformation marks a significant change in the corporate ethos, positioning businesses as key players in addressing critical environmental challenges The greening of the value chain is a chance for companies to not only respond to growing consumer demand for sustainability but also an opportunity for innovation and the development of products and processes that not only meet but surpass environmental standards.

Sustainability as Strategic Investment

Understanding the importance of strategic investment is also a crucial aspect for business leaders, especially when it comes to incorporating sustainability into their business models Rather than viewing it as an ancillary cost, sustainability should be considered a strategic investment that promises substantial returns With the right approach, sustainability generates value, drives innovation, and opens new markets

This forward-thinking mindset positions sustainability not as a compliance task but as a springboard for spotting unexplored opportunities and carving out new niches It's a profound competitive differentiator in a world that is not only environmentally fragile but also more environmentally aware

Asia Pacific companies are increasingly embedding sustainability into their operations. This can be seen in examples such as Ecco, the global leader in innovative comfort footwear, whose 'Dry Tan' technology

exemplifies this trend. It's revolutionising the leather industry with reduced pollution and water use. Another example is Incotec, a seed enhancement company committed to 100% renewable energy by 2030 and optimising resources to achieve a 22% reduction in water usage.

However, the successful integration of sustainable practices within these companies goes beyond innovative technology or strategic business models; it also significantly depends on a skilled workforce devoted to innovation. Their commitment to adopting and championing these sustainability practices is crucial to their effective implementation and realising their environmental goals.

Empowering People for Sustainable Innovation

A business's pulse is its people. Fuelled by a sense of shared purpose, employee engagement is the keystone of driving sustainable innovation. The objective is to instil a corporate ethos where everyone, from the C-suite to front-line employees, is invigorated by the company's sustainability vision.

Ongoing training, workshops, and thought-provoking conversations are instrumental in fostering an environment of environmental stewardship and social responsibility. Leaders must encourage innovation at all levels, offering systems that support and reward sustainable ideas and initiatives. Creating a robust culture of sustainability involves overt and consistent communication about goals, progress, and expectations It's also about accountability and recognition; when the workforce is aligned with the company's sustainable objectives, they become the torchbearers of breakthrough innovations

Leveraging Collaboration for Wider Sustainable Impact

The multiplying effect of collaboration also cannot be ignored. Partnerships across businesses, with clients, and amongst stakeholders are also vital to amplifying the impact of sustainable efforts. It's about pooling resources, sharing best practices, and collectively pushing the boundaries of what can be achieved.

Collaboration extends to transparency and communication, too. Establishing clear mechanisms for reporting and maintaining open communication lines ensures that everyone involved, from employees to customers, can track progress and help the business stay responsible for its goals.

Cultivating Ongoing Learning and Adaptation in Sustainability

In an era where the pace of change is unprecedented, keeping up with new demands and benefits of sustainability involves a commitment to continuous learning and evolution for long-term success. Businesses must keep up-to-date with emerging technologies, industry benchmarks, and global best practices as these facilitate constant improvement and empower people, teams, and businesses to lead the way in sustainability innovation.

To cultivate this learning environment curiosity must be encouraged, as well as supporting research initiatives, and remaining adaptive to the rapid changes in the global landscape. It's about building a resilient corporate structure supported by eager, supportive employees who can pivot and evolve as the definitions and expectations of sustainability transform.

The Pathway to Sustainable Excellence

The integration of sustainable innovation into the core strategy of a business is no longer an option but a fundamental necessity for enduring success It's about looking beyond immediate gains towards a sustainable legacy For leaders, the message is clear - lead with vision, empower your people, collaborate generously, and commit to ongoing improvement This is the blueprint for modern businesses not just to survive but to thrive in our interconnected and resource-constrained world

Remember, your workforce's vigour and creativity directly influence your business's growth and dynamism Cultivating a workforce that is educated, motivated, and aligned with your sustainability mission is the lynchpin for unleashing the transformative potential of sustainable innovation. Keep these pillars in mind, and watch as your organisation adapts to a sustainable future and propels itself - and the world - forward with it.

To explore further how leaders can effectively harness the advantages of sustainable innovation, position their businesses strategically in an increasingly eco-conscious marketplace, and cultivate a corporate culture that fosters growth and responsibility, read our most recent Whitepaper, "Driving Business Success through Sustainable Innovation: Perspectives from CEOs in Asia Pacific." Written as a guide for leaders, discover in more detail what key CEOs and influential players in the Asia-Pacific market are doing to manage sustainability Learn more about the interdependent relationship between sustainability and innovation; gain invaluable insights into how businesses have successfully incorporated their sustainability efforts through their people

Download your free copy here: https://limlogesmasters com/2024/01/29/driving-business-successthrough-sustainable-innovation-in-asia-pacific/

This whitepaper follows from the recent launch of LLM's new #Sustainability@PeopleInBiz – a suite of 9 programmes designed in strategic partnership with the B Purpose Bureau, Eden Strategy Institute (ESI), and Diversity, Inclusion and Education Consultant, Gary Loke, to propel companies towards a sustainable future through their people Created to help leaders and organisations adapt in a fast-paced global market, each tailored programme emphasise sustainability practices for enduring growth and competitive advantage in a conscious marketplace

Leila Lim Managing

Partner,

Asia Pacific, Lim-Loges & Masters

About Lim-Loges & Masters

Lim-Loges & Masters (LLM) is an award-winning boutique C-suite recruitment & HR consulting agency offering Executive Search, Transition Management and Disruption Management expertise across Asia Pacific. LLM partners with multinational companies seeking to transform their organisations through their people. It supports businesses needing to engage talent in a radical way to meet the future of work. https://limlogesmasters.com/

THIS JUNE, BRITCHAM SUPPORTS: LGBT PRIDE MONTH

W H A T D O E S T H E

F U T U R E L O O K L I K E

F O R N O N - D O M S ?

B Y M A T T H E W C U R T I S , D I R E C T O R , H O N G K O N G , T H E F R Y G R O U P

i l e d i n d i v i d u a l s ( n o n - d o m s ) M a t t h e w C u r t i s , D i r e c t o r a t T h e F r y G r o u p ’ s H o n g K o n g o f f i c e , l o o k s a t

w h a t ’ s b e e n p r o p o s e d a n d t h e p o t e n t i a l i m p a c t f o r n o n - d o m s a n d t h o s e

p l a n n i n g a m o v e t o t h e U K

Non-doms have been on the political agenda in the UK for some time, so it wasn’t a great surprise to see new proposals concerning how such individuals may be taxed. If you’re a non-dom you’re generally living in a different country to the one you’re domiciled in, which can allow you to access certain advantageous tax rules When it comes to the UK, non-doms can opt to pay tax under the ‘remittance basis’, leaving overseas interests outside of the UK tax net as long as they’re not remitted or enjoyed in the UK. The new proposals suggest that this current regime will be replaced with a residence-based test which will apply if you’ve not been UK tax resident in the last ten years As a result, it could have a positive impact for long-term expats on their return, as well as those who choose to move to the UK from Hong Kong.

What is domicile and why does it matter?

Domicile has always been an important topic for those with both UK and overseas connections. Simply put, your domicile status determines how much UK tax you pay. Under the current rules if you’re not UK domiciled but are UK tax resident you’ll be charged UK tax on your UK income and gains However, your overseas income and gains can be excluded from UK tax as long as various conditions are met. If you’re UK domiciled and UK tax resident you’ll be taxed on your worldwide income and gains, and won’t be able to shelter overseas income and gains from UK taxation Finally, and most compellingly, if you’re non UK domiciled, generally, you’ll only currently face 40% UK Inheritance Tax (IHT) on any UK assets. Any overseas assets don’t attract any IHT at all On the flip side, if you’re UK domiciled, you’ll face 40% IHT on any worldwide assets - even if you no longer live in the UK.

When do the new rules apply?

The new rules are set to apply from 6 April 2025, although draft legislation is yet to be published, and a general election could affect the shape and form of what’s actually introduced. However, it’s sensible to understand what’s being proposed. Here are some of the key considerations:

I’m planning a move to the UK – how will the new rules affect me?

If you arrive in the UK on or after 6 April 2025, and were non-UK resident for the previous 10 tax years, it’s only the new rules you need to consider For the first four tax years in which you’re UK resident you can elect to pay UK tax only on your UK income and gains Any foreign income and gains won’t be taxed in the UK even if you bring them in. This will be known as the ‘FIG’ (Foreign Income and Gains) regime. If you moved last tax year (2023/24) or will be in this current tax year (2024/25) you'll experience a limited period under the current rules and your ability to use the FIG regime will cease as you move into your fifth tax year of residence After that you’ll be taxed in the UK on all of your worldwide income and gains The phased approach should give more time to plan what to do with your non-UK assets and move these to the UK, with no UK tax consequences.

What will happen to non-UK trusts?

The government made it clear that they wish to tackle the benefits which non-UK trust structures offer There’s been confirmation that Trust Protections (introduced in April 2017) will be removed for all nonUK income and gains which use these structures after April 2025. Whilst we had understood that Trusts established by non-doms before April 2025 should still continue to benefit from ‘excluded property’ trust status, Labour have made their view clear; if they were to be elected, their position would reverse this statement.

How will historic overseas income and gains be dealt with?

Any historic non-UK income and gains won’t be taxed in the UK if you don’t ‘remit’ it to the UK. From 6 April 2025, for a two-year period, another option will be to remit funds into the UK and pay a flat 12% rate of tax. If you plan to bring funds into the UK but don’t want to face the full tax rates this might be a useful option to consider However, it’s very likely that evidence will be needed about the value you’re remitting, especially if you’re claiming that entire amount shouldn’t be taxed

Taking action

For the time being it’s useful to be aware of the proposals whilst remembering that they are only suggestions The 2015 Budget also featured proposed changes for non-doms (although not to the scale announced in March) but the changes took until June 2017 to be legislated – three months after the start of the tax year in which they came into effect. There were also significant amendments in the journey from the announcement to actual legislation! The time to act, if needed, will be when more detail is revealed later in the year.

The same is true of the IHT discussions – at this stage they are simply questions in a consultation Whilst it certainly gives an indication of the government’s direction of travel, nothing has yet made its way into a formal proposal. There’s no doubt that the next steps will be steered by the consultation so it’s very much a situation where we need to just watch this space.

About The Fry Group

With a network of global offices across Hong Kong, Singapore, the UK, Belgium and the Middle East, The Fry Group offers financial planning advice on investments, UK tax planning and mitigation, retirement planning and wills, trusts and estate planning.

Established in 1898, we help clients maximise their wealth with the aim of helping each one achieve financial freedom www thefrygroup hk

Matthew Curtis Director, Hong Kong

This article has been produced with the aim to provide information However, this is not intended to form professional advice nor should it be relied upon as such and before taking any particular action, specic and personal advice should be obtained All levels and basis of, and relief from taxation illustrated here are subject to change The Fry Group (H K ) Limited is licensed to conduct investment advisory and asset management in Hong Kong by the Securities & Futures Commission (SFC; CE Number: ATY965) and is licensed as an insurance broker by the Insurance Authority (IA; Licence Number: FB1207)