TNAG-2396-FCO40-3483-Hong-Kong-Civil-Service-policy-1992 — Page 7

HKA 016/1

7 July 1992

D M Todd Esq

Civil Service Branch

Government Secretariat

Lower Albert Road

Hong Kong

Dear Max,

Foreign & Commonwealth

Office

File (40)

London SWIA 2AH

Telephone: 071-270 2652

UK TAX ON TERMINAL LEAVE PAY AND GRATUITIES

1.

34

Thank you for your letter of 29 May to Michael Stone.

139

2. We have written to the Inland Revenue to enquire whether the apparent change to the UK tax rules, whereby persons returning from abroad will have to pay tax on their terminal leave pay and gratuities, is in practice applicable to overseas service with the Hong Kong Government. We have asked that, if it is applicable, they consider granting a special concession to officers with HKG service.

3. We will let you know as soon as we get a response from the Inland Revenue.

Yours suicerely, Emina Williams

E L Williams

Hong Kong Department

LESADX JRB