To summarise, SP18/91 will mean that the terminal leave pay received by those Hong Kong Government employees who have returned to the UK after 5 April 1992 will be taxed in the UK. We do not see the need for a concession as there seems to be other steps which might be taken by the both the employees and the Hong Kong Government to alleviate the problem.
Finally, I should add that we would be most willing to comment on the draft of any reply to the Hong Kong Civil Service that you may prepare.
I hope this helps explain matters fully, but if you have any further queries do not hesitate to get in touch again.
Yours sincerely
Voltzwill
JENNY OTTEWELL
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