Clause 19 of, and Schedule 6 to, the Finance Bill 2013 contain the provisions intended to enact statement of practice 1/09 (SP 1/09) from 6 April 2013. SP 1/09 applied for tax years ending before that date to resident but not ordinarily resident employees who carried out duties both in the UK and overseas under a single employment contract. It set out how to apportion earnings and allowed employees to calculate their UK tax liability on remittances from qualifying accounts by reference to the total amount remitted in the tax year rather than on a transaction-by-transaction basis.

The Finance Bill provisions are broadly the same as the draft legislation published for consultation in February 2013 (see Legal update, SP1/09: Revised draft legislation and further consultation questions) but reordered and reworded. One change, which may not have much practical significance, is that employees may nominate an existing account provided that immediately before the "qualifying date" the credit balance on the account is £10 or less. The qualifying date is the first date on which general earnings of more than £10 from both UK and non-UK duties are paid into the account. No change has been made regarding multiple qualifying accounts despite the government seeking evidence of why they might be needed. The provisions reflect the government's promise that two breaches of the deposit rule will be permitted in any 12 month period. They also clarify that an account will only qualify for the simplified rules in a tax year if there has been no breach of the deposit rule in that year (which has not or cannot be remedied) and the employee has general earnings in that year in respect of non-UK duties.

Source: Clause 19 of, and Schedule 6 to, the Finance Bill 2013 (version as introduced).