employed in the public services of that territory.
It is likely that a final decision will be taken soon on a compensation scheme, and that consultations with officers in Hong Kong will commence shortly thereafter. One question these officers will definately put to us is whether any compensation paid to them would be treated as exempt from UK
tax.
As you are probably aware HMG, through the offices of the Foreign Secretary (formerly the Secretary of State for the Colonies), has recruited officers to serve in our dependent territories over many years. It follows that the Secretary of State, who was ultimately responsible for the administration of the colonies, had overall responsibility for the terms and conditions of service of these officers. He has therefore ensured at times of constitutional change arising from the UK's changing role in the colonies, that officers in Her Majesty's Overseas Civil Service have been properly compensated for the loss of career following the transfer of sovereignty from HMG to the incoming government.
I should be grateful for your early confirmation that if compensation was paid to Hong Kong HMOCS officers as envisaged, it would be treated as exempt from UK tax in the same way as has been done in the past.
Yours sincerely,
fidelt fas
Bridget Paris
Hong Kong Department
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