Glossary · UK
What is Overseas Workday Relief?
A UK tax relief letting eligible new arrivals exclude earnings for duties performed abroad from UK Income Tax, subject to specific conditions.
Full Definition
Overseas Workday Relief (OWR) is a UK Income Tax relief for individuals who become UK tax resident after a period of non-residence and who carry out some employment duties outside the UK. Broadly, the portion of employment earnings relating to overseas workdays can be excluded from UK Income Tax for a limited number of early years of residence, provided the relevant conditions are met. The relief was historically linked to the remittance basis, but the system was reformed from April 2025 following abolition of the non-domicile regime, so eligibility now turns on recent residence history and a capped basis. Accurate workday records (UK versus overseas days) and how earnings are paid and held are central to a valid claim. OWR matters because international employees can otherwise face UK tax on income earned wholly abroad. Rules are technical and have changed recently, so check current gov.uk guidance and take specialist advice before claiming.