Buing a car in the UK - living in HK

Buing a car in the UK - living in HK

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Toobin

Original Poster:

1,222 posts

241 months

Tuesday 24th June 2014
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Currently I'm living in Hong Kong and I'm thinking of getting a car in the UK to potter around in when I go home (AMV8 or similar). Long story short but my UK license expired in 2012 (just needs renewing) and I was afraid to re-register it in case there were any tax implications for declaring a UK residence - assume I can buy a car with a HK license though?

Also have any of the expats out there kept a car back in the UK? what are the pitfalls? is insurance an issue?

Appreciate any help.

ironictwist

7,127 posts

212 months

Thursday 26th June 2014
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You can do it one of many ways chap...I look after a number of PH'ers cars who are based abroad & there's no set way due to everyone's differing personal circumstances, having said that...

Some have the car registered & bought under their name for when they pop back every 8 weeks - It may be in their name or addressed to their UK residence, or our premises.
Others have all documentation inc V5 sent to us in our company name to handle as they know they'll be away for 9-12 months with the occasional stay in the UK where they will use the car.

Regardless of both scenarios, the owners all have the cars insured under their own policies, they just communicate the fact it it's in a storage facility due to them being abroad (It's far easier to get this in place yourself especially on the off chance you do need to pop back)...Hope that helps!

anonymous-user

61 months

Thursday 26th June 2014
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I had a UK car, kept in store ar Ruddlers near swindon, bus out of Heathrow, drove on my forign licence, car regitered at my Auntie's no problem, just tell the insurance, some countries (Norway for example) it is Illegal for residents to hold a UK licence, so don't assume you need a Uk license.

Daveeoo

53 posts

164 months

Friday 27th June 2014
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I've actually just done this last week, in the same predicament as yourself. I'll just use it every now and then when home but got it mainly for a road trip round Europe later in the year.

I live in Hong Kong, have a Hong Kong licence but my uk one is still valid. I can't see any tax implications in owning and using a car in the UK so long as you can prove you weren't there more than 90 days total averaged over 3 years.

I was spending far too much on hire cars, so for me it works for now!

KGB1

245 posts

238 months

Saturday 28th June 2014
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I have been expat for 23 years and always had a car back in UK and a UK license, I just renewed the photo license online with no problem. I cannot see any tax implications at all as long as you are within the IR limits for non resident. For insurance my cars are registered in my wife's name with me as a named driver (she is still UK resident)

The biggest problem will be keeping the car in good working condition if you are leaving it for long spells, we have had brake and battery issues a couple of times. If you are thinking about something like a AMV8, then I would really consider keeping it with a professional storage company and it will be good to go when you need it.

Kev

HenryJM

6,315 posts

136 months

Saturday 28th June 2014
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Berw said:
I had a UK car, kept in store ar Ruddlers near swindon, bus out of Heathrow, drove on my forign licence, car regitered at my Auntie's no problem, just tell the insurance, some countries (Norway for example) it is Illegal for residents to hold a UK licence, so don't assume you need a Uk license.
Really?

anonymous-user

61 months

Saturday 28th June 2014
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Yes really, if you are resident then you hand in you uk license, and they keep it, I am not in the habit of making comments that are untrue and usually I make them from personal knowledge, as in this case.

HenryJM

6,315 posts

136 months

Saturday 28th June 2014
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Berw said:
Yes really, if you are resident then you hand in you uk license, and they keep it, I am not in the habit of making comments that are untrue and usually I make them from personal knowledge, as in this case.
Well you said that "it is Illegal for residents to hold a UK licence" and clearly it isn't, it may not be legal to drive using it but it's not illegal to hold one.

anonymous-user

61 months

Monday 30th June 2014
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I can assure you it is illegal under Norwegian law for a resident of Norway to hold a foreign licence, I agree it is unenforceable unless you use it in Norway, and it is highly in practical say for people who work over seas, but it is still a law on the book, I used it once to my advantage, when they wanted a uk licences to put points on, and I explained that as a Norwegian resident I could not hold one, these days of course they use quasi licences. But just making a point you do not need a uk licence to own a Dar in the uk, even if you have a uk passport.

HenryJM

6,315 posts

136 months

Monday 30th June 2014
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I suspect that what you are trying to say is that it is illegal for Norwegian residents to drive on a UK licence, not that it is illegal to have one.

Leaving that slightly pedantic point aside, they changed a lot of their rules and those changes came into force in January last year, I'm pretty sure that included being able to continue to use a licence issued anywhere in the EU even if you are a resident.

anonymous-user

61 months

Monday 30th June 2014
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You are probably right that law has changed, but no it was illegal for a Norwegian resident to hold a foreign licence, that was why when you 'exchanged' you uk licence they kept uk one, you could only get it back by surrendering you work permit, and getting it stamped as cancelled in you passport, used to cause a huge problem for me, insurance company insisted on Norwegian licence and uk employees used to hate it. We used to get around by declaring the uk one lost and getting a duplicate.

Toobin

Original Poster:

1,222 posts

241 months

Monday 30th June 2014
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Thanks for all the advice everyone, much appreciated!

Ewaaaaan

131 posts

246 months

Thursday 3rd July 2014
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Ive been expat for a few years and keep cars in the UK. No issues with Tax or Driving license. Use the SORN and try and get limited mileage insurance

Agree with posts regarding maintainance and storage. I done a wee study on what performance motors sit around well. Most need the engines turned over regularly but with some its a must to actually run them. The AMV8 wont be the best to sit around for long periods but probably not the worst. Most Porkers are good, as are Beemers. Jap metal like NSX and skyline are bullet proof. TVRs, old ferraris etc are at the needy end of the scale. Some surprisingly bad garage princesses include R8 and a lot of Mercs.... Research

Economicaly there is no benifit from owning a keeper performance car in UK. Costs can really spiral. If you are running it periodically Its always going to suck cash even if its an good investment. Two ways to make it less of a money pit are self storage and throw aways i.e. buy a reliable cheaper (<10k) car for two years, leave it ouside, do no maintainance and change out reg. examples... 2005 STI impreza, Evo, M3, S200, 350Z, Boxter... These will be reliable, low maintainance and running costs inc depreciation will be under 2.5K in two years

Lots of posts on long term storage on PH. If you can afford it then professional storage is the way to go. If privately, ive a lot of lessons learned i can share





alfaman

6,416 posts

241 months

Wednesday 16th July 2014
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Daveeoo said:
I can't see any tax implications in owning and using a car in the UK so long as you can prove you weren't there more than 90 days total averaged over 3 years.
FYI the tax laws have recently changed - used to be a 4 year rolling average of < 90 days.

now : sliding scale from 46 up to < 180 days .. depending on how many 'ties' to UK.

can do a one off of 179 days if NO ties and <90 previous year.

'ties' include : employment in UK, owned accom available to use in UK, spouse resident in UK, children resident in UK. not sure if car counts as a 'tie'.

..the system is arguably now fairer and more flexible, changed to stop people with family, kids at school, home and job in the UK claiming 'non resident' ( eg: some airline pilots )

disclaimer - I am not an advisor .. this is what was told to me by a friend who is.