INLAND
REVENUE
Pls chase
Inferring out hear
Ms Paris of
Pls deal
withinland Revenue
Pliss Willian's
9/9
Personal Tax Division
time (Schedule E)
tow.
HKA 016/1
M V Stone Esq
Hong Kong Department
Foreign & Commonwealth Office
LONDON
SW1A 2AH
To kiu pls.
10/7
Your reference
Our reference
Sapphire House 550 Streetsbrook Road Solihull
B91 1QU
Telephone 021 711 3232
ext 2243
52
Pa.
1579
SAP127/RCA/139H
Date
9 July 1992
ceoffer Plumb, ODA Q~ 13/7
Dear Mr Stone
UK TAX ON TERMINAL LEAVE PAY AND GRATUITIES
STATEMENT OF PRACTICE SP19/91
139
Noted
Enter pls +18 24/8
17/8
"folio
Recon 17/8 see not to
on
25/8
Pls BU
Yes
diseys
I thank you for your letter of 2 July 1992 addressed to Mr Bowen. He has passed it to me as I have responsibility for day to day technical matters relating to overseas earnings and the Foreign Earnings Deduction.
Enclosed for your information is a copy of the Press Release and Statement of Practice dated 6 December 1991. We were aware of the matter which gives your Hong Kong colleagues concern, namely the taxability of earnings in respect of periods subsequent to an individual becoming resident in the United Kingdom.
The purpose of your letter, if I understand it correctly, is to
This being request a concession for Hong Kong Government Officers. the case I think that it should have been addressed to my colleagues in Somerset House dealing with policy matters in relation to the taxation of overseas earnings. I have passed your letter on and am sure that a reply will be sent shortly.
I do not think that it can Paragraph 4 of your letter intrigues me. be correct and wonder on what analysis of the legal position, in relation to the UK/China Double Taxation Agreement, this conclusion has been reached. As far as I am aware earnings arising subsequent to a person's taking up residence in the UK will not be chargeable to tax in any country other than the UK. The fact that there is no
to add double taxation agreement with Hong Kong would not prevent relief
savething you
being given unilaterally if earnings chargeable on a UK resident were also taxable in Hong Kong.
dint knew about.
५
-1-
61-6
Page 135Page 136