International aspects of personal taxation for Paper P6 (UK) - self-test: questions

Test your understanding

(1). Finch has been resident in the UK since the tax year 2006/07 but has continued to be domiciled in the country of Twitcheria. He is employed by a company that is resident in Twitcheria and performs employment duties in both the UK and Twitcheria.

State whether the following statements are true or false in relation to Finch.

A Finch can choose to be assessed on the remittance basis in respect of his income relating to duties performed in Twitcheria.
B Finch can choose to be assessed on the remittance basis in respect of bank interest arising in Twitcheria.


(2)
. Wren is resident and domiciled in the UK. Her employer has asked her to go and work in the country of Twitcheria for two weeks. Wren will pay for her own meals and for her hotel bill at the end of the trip. She will then claim these costs back from her employer.

Explain how these expanses will be treated for the purposes of UK income tax.


Answers