INLAND
[3x]
REVENUE
C
INLAND REVENUE
Press Release
INLAND REVENUE PRESS OFFICE, SOMERSET HOUSE, STRAND, LONDON WC2R 1LB
NATIONAL MEDIA: 071 438 6692/6706/7327 REGIONAL MEDIA: 071 438 7356 NON MEDIA ENQUIRIES: YOUR OWN TAX OFFICE OR PUBLIC ENQUIRY ROOM 071 438 6420
FOREIGN EARNINGS DEDUCTION:
6 December 1991
VISITS TO THE UNITED KINGDOM
The Inland Revenue today announced a change in the way the rules for giving the 100 per cent foreign earnings deduction will be applied. The change will affect people returning to the United Kingdom following a period of absence abroad during which they have not been resident or ordinarily resident in the United Kingdom.
Such absences will no longer be taken into account when
calculating the qualifying period for the purposes of the 100 per
cent deduction.
This change follows legal advice that the Inland Revenue's previous interpretation of the law was incorrect. The new practice will apply to anyone becoming resident and ordinarily resident in the United Kingdom on or after 6 April 1992.
Full details of the new practice are given in the attached Statement of Practice (SP18/91).
NOTES FOR EDITORS
1. Employees who are resident and ordinarily resident in the United Kingdom but do their job wholly or partly abroad may be entitled to the 100 per cent foreign earnings deduction provided they are absent from the United Kingdom for a qualifying period of at least 365 days. Return visits to the United Kingdom may be made during a qualifying period provided certain conditions are satisfied. The deduction means that they do not pay United Kingdom income tax on their foreign earnings.
2.
The Statement of Practice sets out these conditions together with details of the changed interpretation of the law as it affects those returning to the United Kingdom to resume United Kingdom residence following a period in which they have not been resident or ordinarily resident here.
/3.
The change does not
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