WL0815

Hi, According to RDR4 Overseas Workday Relief, during the tax year, the earnings which relate to duties you perform overseas in that year are foreign earnings if: you’re not domiciled in the UK throughout the year you’re taxed on the remittance basis your duties of employment are carried out wholly or partly outside the UK, and that year is either: the first tax year immediately after 3 consecutive tax years you were not resident in the UK one of the next 2 tax years after such a year These earnings are not taxable in the UK unless they’re remitted to the UK. I believe I satisfy all the conditions above relating to the income from the overseas employment. I just came to live in UK this year and I continue my employment with the overseas employer. I plan to stay in UK for around 7 months. I will apply for no pay leave for 7 months when I stay in UK. Accordingly, I will be paid for 5 months' salary when I work overseas and I receive no salary during my stay in UK. During my leave in the UK, I am not required to do any substantive work, but I may need to reply to certain emails or answer some calls intermittently, and it may take from a couple of minutes up to half hours per day. All the salary are paid by overseas employer to my overseas bank account. My question is how to determine which part of “the earnings” relate to duties you perform overseas in that year. Will 100% of my salary be regarded as "foreign earnings"? If no, how to determine the amount of foreign earnings? Will my work for a couple of minutes in a particular day in UK be counted as a "workday"? Thank you.

I own 100% shares in an overseas investment company A and 50% shares in an overseas company B, but I am not a director and the director of the investment company is a non-UK tax resident. The control and management is outside UK. The non-UK director made the investment decision for the overseas investment companies. I am expected to become a UK tax resident this year, but will claim remittance basis for all overseas income. I would like to know whether the profit of each of (1) the overseas investment company A and (2) the overseas company B will be subject to any UK tax. If so, what will be the tax rate? Thanks!

I am an overseas resident and invested in certain bonds issued by UK companies and non-UK companies. I purchased the bonds through overseas banks. I am expected to become a UK tax resident this year, but will claim remittance basis for all overseas income. I would like to know whether the interest income from the UK bonds but deposited directly into my overseas bank accounts will be covered by the remittance basis. Thanks!

Thanks for your reply. I would like to clarify the term "vest". Does it mean when I "exercise the share option and convert the share option to company shares?" If yes, does it mean that when I exercise the share options now and the market price is B, I will need to declare the difference between B and A (given B > A) multiplied by the number of shares I obtain as my income? If yes, should I declare this part of the income in my self-assessment? And which section of the self-assessment form should I use? Thanks!

Before I became a tax resident in the UK in June 2021, my former company in Hong Kong granted me some company share options with an exercise price of A. These share options were related to my previous employment in Hong Kong when I was a Hong Kong tax resident. I haven't exercised the share options since then. If I want to exercise the share options now and the market price (the company is listed on the Hong Kong Stock Exchange) is price B, do I need to pay any income tax on the difference between B and A (given B > A)? In the future, if I sell the shares at price C (given C > B > A), should I declare a capital gain on the difference between C and A?