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Overseas workday relief


Produced by Tolley in association with
Employment Tax
Guidance
tag-icon Autumn Budget 2024

Overseas workday relief


Produced by Tolley in association with
Employment Tax
Guidance
tag-icon Autumn Budget 2024
imgtext

Overseas workday relief (OWR) provides for a temporary tax relief in respect of overseas earned income, where an individual’s employment is partly undertaken in the UK and partly undertaken overseas. The relief is only available for a limited period following new arrival to the UK.

In its Autumn Budget 2024, the Government confirmed that the current non-UK domicile tax regime was to be replaced with a residence based system from 6 April 2025. Summary details of the new regime is provided in the Domicile overview guidance note. With these changes, a new system for providing relief on overseas employment income was also introduced on 6 April 2025. This guidance note summarises the new relief for 2025/26. It also retains the guidance previously provided, ie covering periods up to 5 April 2025, and provides some general guidance on OWR calculation points.

See also the Abolition of the remittance basis from 2025/26 guidance note, Reforming the taxation of non-UK domiciled individuals Published 30 October 2024 and FA 2025, s 38.

Overseas workday relief (foreign employment relief) from 2025/26

The

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Paul Tew
Paul Tew

Writer and advisor at Paywatch

Paul Tew is a freelance adviser, primarily in the areas of pay, personal taxation and remuneration planning. A frequent contributor to technical journals on pay and benefits issues, having written for the "In Business" section of the Times. Paul continues to supply articles for various recognised professional publications including Pay and Benefits magazine, Taxation magazine and Company's Secretary's Review. Paul also has had several loose leaf and bound books published on a variety of subject matter including PAYE, NIC, Sickness and Maternity Pay.Paul has written and presented training courses as well as headed up payroll and employment help desks and acted as an assessor for recognised Payroll/HR qualifications. Paul previously worked in the healthcare and oil sectors managing Pay and benefit services, so has many years of experience in dealing with PAYE and employment compliance issues across a broad range of industries and organisations.

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