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Is holiday pay earned by a recent UK resident from employment in the US taxable in the UK?
My client an American citizen has moved from the US to the UK and has become a UK tax resident. Their previous employer had offered holiday pay earned over several years as part of a final pay packet and a performance bonus in recognition of a job well done.
The employer has no UK connections my client has never worked here and the accrued holiday pay was deposited into the individual’s US bank account.
I have contacted HMRC which has given contradictory information as to whether these payments are taxable in the UK. Can readers advise?
Query 19 148– American.
Reply by Al Capone
From what I understand the holiday pay relates to earnings from an overseas employment and the duties were undertaken while non-UK resident. The earnings are therefore not taxable in the UK no matter when they were...
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