HMRC has published a summary of responses to a previous consultation on Statement of Practice 1/09. SP1/09 provides a simplified tax treatment of income for certain employees who are taxed on the remittance basis. Views are now being sought on draft legislation.

Responses to the earlier consultation raised a number of detailed issues for SP1/09 requiring careful consideration to ensure that any legislation would not depart significantly from the way in which SP1/09 currently works. As a result the Government announced it was deferring the legislation of SP1/09 until Finance Bill 2013 to allow more time to take account of the views received in consultation, and to co-ordinate with the parallel deferral of the abolition of Ordinary Residence for tax purposes.

This consultation therefore sets out the approach the Government intends to take in legislating SP1/09. Views are sought by 7 December 2012 on the details of the proposed statutory rules to replace SP1/09 (the new “special mixed fund rules”) to ensure they meet the relevant policy objectives.