From the ICAEW:
An early Christmas present from HMRC was the publication of guidance notes for the Statutory Residence Test (SRT), 55 pages, and the Overseas Workday Relief (OWR), a mere 8 pages.
For most individuals their UK residence status after 6 April 2013 will be clear-cut as either definitely resident or definitely non-resident but there will be some “around the edges” where the position... is still a little fuzzy. The guidance notes give several examples to assist the taxpayer interpret the new rules, but they will probably find that none of the examples fit their own particular circumstances. It is hoped that the new legislation will prove to be robust and cover all eventualities without the need for numerous challenges through the courts, but we will wait and see.
The OWR has previously been defined using the concept of ordinary residence, and as that concept will disappear from 6 April 2013, new rules are required. In essence, the relief excludes earnings for overseas work from UK tax for non UK domiciled individuals who are resident in the UK for less than three years provided the earnings are not remitted to the UK. Individuals claiming OWR under the old rules for 2012/13 will continue to use the old rules rather than adopt the new ones.
An early Christmas present from HMRC was the publication of guidance notes for the Statutory Residence Test (SRT), 55 pages, and the Overseas Workday Relief (OWR), a mere 8 pages.
For most individuals their UK residence status after 6 April 2013 will be clear-cut as either definitely resident or definitely non-resident but there will be some “around the edges” where the position... is still a little fuzzy. The guidance notes give several examples to assist the taxpayer interpret the new rules, but they will probably find that none of the examples fit their own particular circumstances. It is hoped that the new legislation will prove to be robust and cover all eventualities without the need for numerous challenges through the courts, but we will wait and see.
The OWR has previously been defined using the concept of ordinary residence, and as that concept will disappear from 6 April 2013, new rules are required. In essence, the relief excludes earnings for overseas work from UK tax for non UK domiciled individuals who are resident in the UK for less than three years provided the earnings are not remitted to the UK. Individuals claiming OWR under the old rules for 2012/13 will continue to use the old rules rather than adopt the new ones.
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