TNAG-2396-FCO40-3483-Hong-Kong-Civil-Service-policy-1992 — Page 23

布政司署

香港下亞畢道

本署檔號 OUR REF: (7) in CP 10/26 III

HKA CIE/1

來函檔號 YOUR REF:

Mr Mike Stone

Hong Kong Department

Foreign and Commonwealth Office

Dear Mike,

34

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

29 May 1992

Wiss villanis

lls

разие.

M 5/6

U.K. Tax on Terminal Leave Pay and Gratuity

I attach a Copy of a letter from the AECS concerning a change in the U.K. tax rules whereby persons returning to the U.K. from abroad will have to pay U.K. tax on their terminal leave pay and gratuity. I should be grateful if you would seek clarification from the U.K. Inland Revenue as to whether this change applies to overseas service with the Hong Kong Government. The AECS have attached a copy of

a note issued by the ODA which states clearly in paragraph 9 that when an officer returns to the U.K., any leave pay and gratuity attributable to his employment abroad will normally be exempt from U.K. tax. If it is confirmed that HKG officers will be liable under the new rule, I should be grateful if you would seek a concession from the U.K. Inland Revenue for HKG officers.

se

Mike Waters has mentioned that this could have HMOCS implications lump sum commuted pension gratuities and compensation payments.

Encl.

c.c.

ODA

yours

Max

(D M Todd)

for Secretary for the Civil Service

(Attn: Mr Dave Fish)