Nxt Manchester — Jan./Feb. 2009 - (Page 25)

BUSINESS SERVICES Steve Bold National Executive Partner BTG Tax “This might include an employee based in Manchester who is obliged to travel to Birmingham on two days per week— where the 40 per cent test is met—or, say, every Monday, regarded as regular,” said Steve. “This all may seem a touch harsh to some, but HMRC is for better or worse laying down the rules on what is and what is not acceptable,” he said. Meanwhile, BTG Tax is highlighting that HMRC has confirmed it will continue to allow taxpayers to enjoy the benefit of concessionary “split year” treat- ment in regard to share options. This allows an employee who is resident in the UK at any time in a tax year to treat the resident and non-resident parts of the period as separate tax years. Hence the employee can be granted share options in the nonresident part of the year free of UK tax. Without the concession, an employee would be regarded as resident for the full tax year in which he came to the UK. “For example, an employee granted options on June 1, 2008 by his employer in the US before being seconded to the UK, would in such circum- stances be taxable on the exercise of those options, even though he did not arrive in the UK until Feb. 1,” said Steve. By clarifying the position, HMRC has agreed that in fact the employee would be treated as not resident in the UK for the period up to Jan. 31 and therefore would not be subject to UK tax on any future gains obtained on exercise of the options granted in the nonresident period, as long as there is no connection to UK service.

Table of Contents Feed for the Digital Edition of Nxt Manchester — Jan./Feb. 2009

Cover Contents Editor's Notes Nxt Challenge MediaCityUK 2009 - The Vision The Lowry Hotel Nxtbook Stateside Nxtbook Europe Colin's Spinning Jenny Puts Manchester on the New Media Map Personal Liability Shock in Store for Insolvent Directors Key Tips to Generate Web Site Revenue Economy: Business Rescue Taxman Drives a Hard Bargain on Travel Expenses Server-Hosting Sector Goes Green Don't Let the Credit Crunch Affect Your Health The Changing Face of Manchester Salford University Appoints MediaCity Director Century Turns Real Nxt News Events

Nxt Manchester — Jan./Feb. 2009

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