EIM43615 | Globally mobile employees: Overseas Workday Relief: artificial arrangements

There are anti-avoidance provisions at section 41Z ITEPA 2003 which limit the relief available under Chapter 5C of Part 2 ITEPA 2003 where arrangements have been put in place to:

• obtain relief to which an employee would not otherwise be entitled, or

• obtain an amount of relief which is greater than that which the employee would otherwise be entitled.

Where arrangements fall within this subsection, the extent to which the following amounts of income are qualifying income can be disregarded when calculating the amount of relief that may be due to the employee. The income types that can be disregarded are:

• general earnings which are qualifying general earnings;

• third party income which is qualifying third party income;

• securities income which is qualifying securities income.

The term ‘arrangements’ includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).