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HMRC internal manual

Double Taxation Relief Manual

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Double Taxation Relief Manual: Guidance by country: Australia: Fringe Benefits Tax

The Agreement with Australia applies for fringe benefits provided on or after 1st April 2004.

Where a fringe benefit would otherwise be taxable in both the UK and Australia, Article 15 of the new Agreement provides that it will be taxable only in the country that would have the primary taxing right over that benefit if it were ordinary earnings. In other words, it follows Article 14.

‘Fringe benefit’ in this context has the meaning it has under Australia’s Fringe Benefit Tax Assessment Act 1986. It does not include a share option.

This special provision for Australia is necessary because it charges benefits on the employer rather than the employee.