Chinese New Year is the biggest festival in the Chinese calendar, celebrated by Chinese people around the world. Also known as Lunar New Year, or the Spring Festival, the event sees Chinese people from around the world hold big family reunions, travel abroad, and give substantial gifts to those close to them.
The country, and practically all of its industries, can shut down for three, possibly even four weeks overall, leaving an overall impact not only on China but other countries too. With a huge majority of people travelling to be reunited with family for this period, flights and rail expand rapidly but factories can be shut for over a month, leaving a huge gap in world wide markets with financial solutions often being sought out to ride out the volatile change in markets.
Also with the UK opening its borders to three million Hong Kong residents and their dependents – potentially five million people – following China’s democracy crackdown, they have been arriving in the UK or applying to come here – on average – at a rate of 2,500 a week since January 2020.
Hong Kong immigrants are seen as very industrious, entrepreneurial workers and with the UK being seen as a world leader in innovation, with a highly skilled workforce and a competitive tax regime, many businesses look to the UK for growth opportunities and financial assistance for foreign investors. The UK offers a welcoming environment to foreign investors with various options available and as a result, the UK has become a premier destination for Chinese companies receiving more Chinese capital than any other country in the EU.
Despite the economic global slowdown due to the pandemic, the UK remains one of the most attractive places in the world to invest in with 1,538 foreign direct investment (FDI) projects in the 2020/2021 financial year. The UK economy showed its underlying strengths, attracting investment from around the world.
Can a Non-UK Resident Invest in the UK?
Yes, non-UK residents can invest in the UK. But while non-UK residents are welcome to invest in UK companies and UK projects, there are some things that foreign companies and private investors need to keep in mind.
- Non-residents don’t need to pay UK tax on bank interest or dividends on UK shares but are liable to pay income tax on rental income earned from property.
- Tax reporting deadlines for non-UK residents paying capital gains tax or income tax are shorter, with investors typically having until January 31 to report their tax returns.
- As of April 2021, foreign investors pay an additional 2% stamp duty surcharge when buying UK real estate.
Does the UK Allow 100% Foreign Ownership?
Yes, the UK allows 100% foreign ownership as there are no laws in place in the UK that limits foreign ownership and inward investment. However, you may need regulatory approval when buying a large asset due to fair financial practices and UK national security.
For further advice on growth opportunities and financial assistance for foreign investors, please contact us here.