Introduction

From 6 April 2013 to 6 April 2025, individuals who were UK resident but are not domiciled and had duties of employment both in the UK and overseas under a single contract of employment were entitled to favourable tax treatment for the first three years of UK residence:

1. 1)

   overseas workday relief ― the earnings from the employment were apportioned between UK and overseas duties on a days basis, with there only being a remittance from the qualifying account in (2) below for UK tax purposes if the total amount received in the UK plus the amount brought in to the UK from that bank account (which is attributable to employment income under the special mixed fund rules) exceeded the total 'UK portion' of the earnings

2. 2)

   special mixed fund rules ― an administrative relaxation of the rules on remittances from mixed fund rules in relation to the bank account where the individual deposits funds from the employment

This tax treatment is usually collectively referred to as overseas workday relief or OWR.

Overseas