Page 1 of 1

Treatment of bonus after moving to UAE

Posted: Tue Aug 01, 2017 10:49 am
by uk_expat
Hi,

I have UK tax resident and working in the UK for the past few years. My current employer is relocating me to a new role in UAE this September. Under the split-year treatment, I will cease to be UK tax resident on the relocation date. I expect to be paid a bonus in February 2018 which covers my performance for the 2017 calendar year. The bonus is at my employer's discretion - I have no contractual entitlement to it.

Will I have a UK income tax liability on this bonus payment?

Many thanks,

uk_expat

Re: Treatment of bonus after moving to UAE

Posted: Tue Aug 01, 2017 12:08 pm
by AmanSood
Yes a proportion of the bonus will be taxable in the UK as part of it relates to UK workdays i.e. the period from January to August 2017.

Re: Treatment of bonus after moving to UAE

Posted: Thu Aug 03, 2017 3:07 pm
by uk_expat
Thanks AmanSoud. Is there a HMRC guidance note or a section of the tax code that covers this?

Re: Treatment of bonus after moving to UAE

Posted: Thu Aug 10, 2017 10:33 am
by etf
The following link may help you find the area that you need to look at.

https://www.gov.uk/hmrc-internal-manual ... l/eim40008

KR

etf

www.theexpatriatetaxfactory.com