Steve Wade considers how the draft legislation on overseas workday relief differs from HMRC's treatment under Statement of Practice 1/09
How does the draft legislation on overseas workday relief published on 11 October differ from HMRC’s existing treatment under its statement of practice?
Resident but not ordinarily resident employees are taxable on their general earnings for UK duties whether these earnings are paid in the UK or not. If such employees elect for the remittance basis their general earnings for non-UK duties are only liable to UK taxation if they are remitted to the UK. The unremitted earnings not being taxed in the UK is commonly described as ‘overseas workdays relief’ (OWR). OWR will continue under the proposed statutory residence test (SRT) despite the proposal to abolish ordinarily resident for most...
