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P Bowen Esq
Board of the Inland Revenue Room 128
Sapphire House
550 Streetbrooks Road SOLIHULL
West Midlands
B91 1QU
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REFERENCES AND AMENDMENTS
UK TAX ON TERMINAL LEAVE PAY AND GRATUITIES
We have been approached by the Government Secretariat in Hong Kong about an apparent change to the UK tax rules, effective from April 1992, whereby persons returning from abroad will have to pay tax on their terminal leave pay and gratuities. I should be grateful if you could let me know whether this change in practice applies to overseas service with the Government of Hong Kong.
2. I attach an extract from "Taxation" which sets out
the revised "Statement of Practice SP 18/19". This
appears to reverse the situation which has existed for many years in relation to salary and other allowances for overseas service paid or receivable after an officer has returned to the UK. You will appreciate that many officers returning to the UK have long periods of accrued leave because staff shortages, pressure of work and the exigencies of the service generally, have meant that they
have been unable to take their full leave entitlement.
The hardest hit will, of course, be those who are due to leave Hong Kong in the coming months, having made their plans on the basis that no UK tax would be payable on leave and gratuities earned in the service of the Government of Hong Kong.
No comments yet.
Private notes are available after approval.