Is it time to replace Overseas Workday Relief?

Steve Wade discusses Overseas Workdays Relief, the issues and problems the relief presents, and suggests a better relief

What is overseas workday relief?

Overseas workday relief (OWR) is the common parlance used to describe the situation whereby:

  • a UK resident but non-UK domiciled employee who claims the remittance basis
  • is taxed on earnings for UK duties wherever that remuneration is paid or received
  • but is only taxed on the remuneration for non-UK duties if that remuneration is remitted to the UK when certain conditions are met. 

Those conditions are found in section 26A ITEPA 2003 which states that:

“(1)     An employee meets the requirement of this section for a tax year if the employee was—