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Statement of Practice 1/09, ‘Employees who are resident but not ordinarily resident in the UK’, has been extended by 12 months.
It took effect from 6 April 2009 to cover the tax treatment of employees who are resident but not ordinarily resident in the UK, and who have a single contract of employment covering both UK and overseas duties.
It was introduced with the intention that it would apply for one year, before being legislated in Finance Bill 2010.
Since April 2009, HMRC have worked towards this aim, but have not found possible to resolve all the outstanding issues in time to legislate the practice this year.
In these circumstances, the financial secretary to the Treasury, Stephen Timms, has agreed that the statement will apply for a further year, until 5 April 2011.
HMRC will continue working with stakeholders on the issues which remain unresolved, with the aim to bring SP1/09 into legislation as part of Finance Bill 2011.
Where an account is held in the joint names with a spouse or civil partner who has no income or gains of their own, except a share in any interest that arises on the account, HMRC have agreed that SP1/09 can apply to all qualifying accounts on or after 6 April 2009.
