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HMRC internal manual

International Manual

Employees of International Organisations: Where exemption does not apply - Special cases

British citizens employed by the following international organisations are not entitled to exemption from UK tax on their emoluments:

  • The World Bank
  • The International Monetary Fund
  • The International Development Association (IDA)
  • The International Finance Corporation (IFC)

This is because the Bretton Woods Agreement Order in Council (SI. 1946/36 giving effect to the international agreement which established the World Bank and the International Monetary Fund), and the Orders in Council for the International Development Association (SI. 1960/1383) and International Finance Corporation (SI. 1955/1954) allow member states of those organisations to tax the salaries of employees who are their own citizens, (while requiring them to exempt from tax the salaries of those who are citizens of other countries). A UK citizen working in Washington may of course not be liable to UK tax for other reasons, for example, because he is not resident in the UK.