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Where Taxpayers and Advisers Meet

Garden leave and overseas workday relief

al2222
Posts:1
Joined:Thu Dec 03, 2020 2:23 am
Garden leave and overseas workday relief

Postby al2222 » Fri Dec 04, 2020 1:38 am

Hi -- I was employed in the UK last year, and claimed both Overseas Workday Relief for overseas workdays, as well as Remittance Basis for my UK tax return. I typically worked overseas around 25% of the time.

I left my employer over the summer, with my final workday in August, after which I was placed on Garden Leave until September. I permanently left the UK in August and spent my Garden Leave overseas, and started new full time employment overseas in November.

Would the days on Garden Leave count as overseas workdays for Overseas Workday Relief?

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Garden leave and overseas workday relief

Postby bd6759 » Fri Dec 04, 2020 7:25 pm

I think s38 will apply here and treat the earnings as if they were for duties in the UK.
https://www.legislation.gov.uk/ukpga/2003/1/section/38
Earnings for period of absence from employment
(1)This section applies if a person ordinarily performs the whole or part of the duties of an employment in the United Kingdom.
(2)General earnings for a period of absence from the employment are to be treated for the purposes of this Chapter as general earnings for duties performed in the United Kingdom except in so far as they would, but for that absence, have been general earnings for duties performed outside the United Kingdom.

The second part may give you hope inasmuch that if you would ordinarily have 25% of that time overseas, you may be able to include that proportion.


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