Overseas Workdays Relief – HMRC updated guidance

HMRC have issued revised guidance on the Statutory Residence Test and the operation of Overseas Workdays Relief (OWR) in this “brave new world”.

There is good news for expatriates moving to the UK as OWR continues to offer a great opportunity for those who will travel on business. The new regime is a lot clearer than the previous rules based on “non-ordinary residence”, and anyone moving to the UK who has not been UK resident in any of the 3 previous UK tax years should be eligible.

Put simply, an individual who spends (say) 10% of his working time outside the UK should be able to use OWR to reduce the UK tax bill on his earnings by 10%. Careful structuring is required, however, not least in the operation of non-UK bank accounts. This is an area which is now more prescriptive than ever, but some forward planning should allow individuals to make the most of the relief.

Please contact us to speak to adviser about this and other tax breaks available to foreign nationals in the UK.