Remittance basis ― overview with employment focus

Produced by Tolley in association with and Steph Carr of BDO LLP

Employment Tax

Guidance

STOP PRESS: At Spring Budget 2024, the Chancellor announced that the remittance basis would be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

Key points

•
provided certain conditions are met, Overseas Workday Relief (OWR) can be an extremely valuable form of tax relief for non-domiciled individuals who perform employment duties both in the UK and overseas
•
OWR is only available in the tax year of arrival and subsequent two tax years following a three year period of non-residence
•
OWR is generally calculated by reference to the percentage of days an individual spends working overseas
•
a bank account which qualifies for the special mixed fund rules allows for all offshore transfers to be treated as one single transfer for

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