If you have recently moved or relocated to the UK but continue to do part of your job outside of the UK, you may be eligible to claim Overseas Workday Relief to avoid paying UK tax on earnings related to responsibilities performed outside of the UK (OWR).

To be eligible for Overseas Workday Relief, you need to qualify that you meet all of the following requirements:

• you are subject to income tax based on remittance 
• you are not considered to be domiciled in the UK for the whole of the year
• your work responsibilities are carried out fully or partially outside of the United Kingdom, and that year is either:
  • • The first tax year that follows immediately following three tax years in a row in which you were not resident in UK
    • One of the two subsequent tax years that follow such a year.

The OWR rules apply to bonuses, stock-based and other forms of payment. It is essential to remember that claiming Overseas Workday Relief in connection with share awards will impact the treatment of the sale of the shares if they are subject to UK tax in a subsequent year.