| Remuneration | | | £ |
| Base salary (6/12 x £120,000) | | | £    60,000 |
| Bonus | | | £    90,000 |
| Less bonus related to pre-arrival | | | £    (67,500) |
| Hypothetical tax on salary £60,000 @ 27%) | | | £    (16,200) |
| Hypothetical tax on bonus (£22,500 @ 37%) | | | £    (8,325) |
| Accommodation (£6,000 x 6) | | | £    36,000 |
| Taxable relocation costs (note 1) | | | £    500 |
| Net pay | | | £    94,475 |
| Less: | | | |
| Unremitted s.26 ITEPA 2003 earnings (note 2) | | | £    (17,615) |
| Net taxable pay | | | £    76,860 |
| Personal Allowance (£0 as remittance basis claimed) | | | £    - |
| Tax | | | |
| £    37,700 | @ 20% | £    7,540 | |
| £    39,160 | @ 40% | £ 15,664 | |
| Tax before gross-up | | £ 23,204 | |
| Gross up @ 40/60 | | £ 15,469 | |
| Total tax | | | £    38,673 |
| | | |
| Funded by hypothetical tax | | | £    (24,525) |
| Cost of tax equalisation | | | £    14,148 |
Note 1 – Exemptions available
Qualified Relocation expenses under s 271 ITEPA 2003
| £ | |
| Shipping | 5,500 | |
| Home search | 3,000 | (£2,500 x 1.20 (vat) = £3,000 |
| Limit | (8,000) | |
| Taxable relocation costs | Â Â Â Â 500 | |
Qualified
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Web page updated on 17 Mar 2025 15:51