ARTICLE · 01 AUGUST 2024

How The UK Budget Changes Affect Employees Relocating To The UK

Child & Child

Explore more from Child & Child

From 6 April 2025, the UK will abolish the non-domicile regime, altering overseas workday relief (OWR). Key changes include allowing all non-residents for 10 years to claim OWR, extending the requalification period to 10 years, and exempting overseas earnings from UK tax for three years. Transitional rules apply for recent arrivals.

United KingdomTax

Currently, UK residents who are domiciled in the UK are taxable on their worldwide employment earnings.

However, people domiciled outside of the UK, who are coming to work in the UK, can currently elect to apportion their employment earnings between work carried out in the UK and work carried out overseas.

They can then claim the remittance basis on the overseas earnings, so that these are not taxed in the UK so long as they do not bring these earnings into the UK. This broadly applies for their first three tax years in the UK and is known as overseas workday relief or OWR.

What's changing?

The current non-dom regime is being abolished from 6 April 2025. From this date, it will not be possible to claim via the remittance basis and the replacement regime is not tied to a person's domicile. It is proposed that the operation of OWR will therefore change in three main ways:

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

VAT Registration: Are You Counting Everything That Matters?

United KingdomTax

EMI Due Diligence Is Transaction Archaeology

United KingdomTax

Burges Salmon LLP

Inheritance Tax On Pension Wealth: Key Changes From April 2027 And Planning Considerations By Hazel Power

United KingdomTax

Sinclair Gibson LLP

Returning Value To UK Shareholders: HMRC Listens, But Presses Ahead

United KingdomTax

Macfarlanes LLP

Patent Box Take-up: What Has Changed Since The Beginning?

United KingdomTax

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Tax
- National Insurance
- Income Tax

Related Comparative Guides

Comparative Guide

Tax Disputes

Comparative Guide

Tax

See more popular content from

Tax

Has Your Mauritian Transfer Pricing Documentation Kept Pace With The Mauritius Revenue Authority?

On June 10, 2019, the Hon. Prime Minister and Ministry of Finance & Economic Development of Mauritius presented the 2019-20 Budget.

United KingdomTax

DLA Piper UK LLP

What Are Exit Taxes And How Do They Work?

As the UK anticipates its first Budget under Andy Burnham's premiership on 28 October 2026, questions arise about whether 'Manchesterism' will introduce an exit tax regime. This analysis examines how different jurisdictions—from Canada's deemed disposal system to France's targeted charges on substantial holdings—tax individuals leaving their borders, and explores what form a UK exit tax might take if implemented.

Treasury Committee calls for better and cheaper tax compliance

United KingdomTax

US FATCA In The UK - Updated HMRC Guidance Notes Released

Today HMRC released updated Guidance Notes on implementing FATCA in the UK.

United KingdomTax

Andy Burnham’s Property Tax Reform: What High Net Worth Individuals Need To Know

Burnham has consistently advocated for replacing council tax and stamp duty with a land value tax - an annual levy charged on the value of the land itself, rather than the buildings on it.

United KingdomTax

Capital Gains Tax And Private Equity Tax Under A Labour Government: What We Know So Far

Labour plans to defer major tax changes until the autumn Budget. Key potential changes include raising capital gains tax, altering private equity taxation, and possibly integrating capital gains and inheritance tax rules.

United KingdomTax

UK ‘Windfall’ Bank Tax Would Worsen An Already Complex System

UK banks face the prospect of a new windfall tax as campaigners push for additional levies on strong reported profits, while industry leaders warn of potential consequences for lending, investment, and the UK's position as a global financial centre. This analysis examines the practical implications of adding another layer to an already complex sector-specific tax regime that includes corporation tax, banking surcharge, and bank levy.

United KingdomTax

Frequently Asked Questions About IRS Clearance And Form 706-NA

UK executors and beneficiaries dealing with US assets face significant delays in obtaining IRS Transfer Certificates, with waiting times now extending to two or three years. This comprehensive FAQ addresses the critical questions surrounding Form 706-NA applications, US estate tax requirements, and the practical challenges of administering estates containing US shares and investments when the deceased was not a US citizen.

Lester Aldridge LLP

Taxation Of Earn-Outs On Business Sales: Capital Gain Or Disguised Salary?

HMRC is increasing scrutiny of earn-out arrangements, particularly where founders remain involved in the business after completion and deferred consideration depends on future performance of the target company.

United KingdomTax

Remote Working And Permanent Establishment Risk: An Updated Guide

The OECD has updated its guidance on when remote working arrangements create a permanent establishment for tax purposes, introducing a new 50% threshold test and a 'commercial reason' analysis. These changes fundamentally alter how businesses must evaluate their cross-border home working policies and could result in unexpected tax obligations in jurisdictions where employees work remotely.

United KingdomTax

Travers Smith LLP