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Thank you for confirming that an individual can claim Foreign Workers’ Exemption if their combined UK and foreign income in the relevant tax year is less than £12,570. Does an individual need to complete a self assessment tax return to claim Foreign Workers’ Exemption or is it automatically applied? Please note that split year treatment is not being applied for in this case.

My friend qualifies for Foreign Workers' Exemption. Is this exemption automatically applied or would she be required to complete a self assessment tax return for the relevant tax year? She would have no other reason to complete a tax return.

Thank you for your help.

Thank you for your reply but that doesn't answer my question unfortunately. I would like to know if an individual is eligible to claim the Foreign Workers’ Exemption if that individual's combined UK and foreign income in the tax year is less than £12,570 (which is below the basic income tax band).

My friend is a UK non-domicile that moved from Singapore to the UK in October 2021 (during the 2021/22 tax year). She was classed as a tax resident in the UK for the 2021/22 tax year as she met the second automatic UK test in that tax year. My friend earned employment income overseas in Singapore in the 2021/22 tax year before she moved to the UK (i.e. between 6th April 2021 and the date that she arrived in the UK in October 2021). My friend meets all of the requirements to qualify for the “Foreign Workers’ Exemption” in the 2021/22 tax year - I understand that she would therefore not need to declare the foreign income that she earned in this tax year prior to her arrival in the UK and she will therefore not need to complete a self assessment tax return for the 2021/22 tax year (she would have no other reason to do so). Is my understanding correct?

Thank you for sharing a link to the guidance which allowed me to navigate to the following manual: https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm12010 The guidance available in the manual above confirms that unless split year treatment applies, an individual is either UK resident or non-UK resident for a full tax year, and at all times in that tax year, under the SRT.

Thank you for your confirmation.

Thank you for the link - I read through that after you shared it in a previous post. Unfortunately I cannot find the answer there. I understand that my friend is not entitled to Private Residence Relief in the 2022/23 tax year. Is my friend still able to claim Private Residence Relief for the last 9 months of ownership (i.e. between December 2021 and August 2022) or would she lose some of this entitlement given the 9 months partially covers the 2022/23 tax year where she is not entitled to Private Residence Relief (as above)?

Thank you for your response. My friend is not required to complete a self assessment tax return for any reason in the 2022/23 tax year. In this case would she still need to complete a tax return solely to claim the split year treatment for the tax year or would the completion of a P85 form when she departs from the UK allow her to claim the split year treatment?

My question is regarding the fourth requirement: "your combined UK and foreign income is within the band for basic rate Income Tax" In a scenario whereby an individual's combined UK and foreign income in the tax year was less than £12,570 (which is below and therefore not within the basic income tax band), would the individual still qualify for the “Foreign Workers’ Exemption”?