EIM43570 | Globally mobile employees: Overseas Workday Relief: qualifying foreign third party income

Section 41V ITEPA 2003 defines what it means for third party income to be “qualifying third party income” and for qualifying third party income to be “qualifying foreign third party income”.

“Third party income” is an amount that counts as employment income under Chapter 2 of Part 7A ITEPA 2003 (see EIM45000+).

Third party income is “qualifying third party income” to the extent that the value of the relevant step that counts as employment income is “for” the qualifying year (see EIM45720) and it is in respect of an employment the duties of which are performed wholly or partly outside the UK during the qualifying year.

If the qualifying year is a split year, only the third party income attributable to the UK part of the year can be qualifying third party income. Any attribution required is to be done on a just and reasonable basis.

Qualifying third party income is “qualifying foreign third party income” to the extent that it is not in respect of duties performed in the UK. The extent to which qualifying third party income is not in respect of duties performed in the UK is to be determined on a just and reasonable basis. Section 41Y applies in determining the location of employment duties for the purpose of this Chapter. More information can be found on the following manual pages:

• EIM40202 – in respect of periods of absence

• EIM40206 – in respect of duties performed on a vessel or aircraft

• EIM40208 – in respect of workers in the offshore oil and gas industry on the UK continental shelf

• EIM40210 - in respect of earnings received for duties that were not performed.

Please note that section 39 ITEPA 2003 in connection to incidental duties has not been extended to this Chapter.