EIM34010 | Special rules for employees travelling to work outside the United Kingdom: introduction

Sections 341 to 342 and Part 5 Chapter 5 ITEPA 2003

Factors to consider

Deductions available under the special rules vary considerably depending on the following factors:

• the residence status of the employee

• whether the employee performs all or part of the employment duties outside the UK and

• whether the expense is met or reimbursed by the employer and

• whether the employee satisfies the conditions relevant to each expense.

Definitions

The rules contain the following terms relating to the residence status of the employee in the United Kingdom. They are used in this guidance. It is important to understand what they mean.

You may need to look up the definitions at the references given below, but in very general terms the meanings are as follows:

Residence - UK residence is determined by reference to the Statutory Residence Test, see HMRC manual RFIG20000 .

Qualifying new resident - An individual is a qualifying new resident if he or she is a UK resident in the tax year and was not UK resident for each of the previous 10 tax years. He or she will continue to be a qualifying new resident for any of the next three years for which he or she remains UK resident, as individuals can be qualifying new residents for up to four UK tax years. Any individual who is a member of the House of Commons or the House of Lords for any part of a UK tax year is disqualified from being a qualifying individual for that yax year.

Merely incidental duties of the employment that are trivial or subordinate to the substantive core duties may be disregarded when deciding whether an employment is carried on wholly outside the United Kingdom.

The United Kingdom is England, Wales, Scotland, Northern Ireland, the territorial seas extending to the 12 mile limit from the shoreline and airspace over that land and sea, see EIM40032.

Further guidance may be found at the references listed below: