EIM43620 | Globally mobile employees: Overseas Workday Relief: limits on qualifying foreign employment income from associated employments

Section 41Z1 ITEPA 2003 limits the amount of relief which can be claimed under Chapter 5C of Part 2 ITEPA 2003 where an employee receives qualifying foreign employment income from associated employments, which are not performed wholly outside the UK.

An associated employment is defined at section 41Z1(4) as employments with the same employer or with associated employers and sections 24(5) and 24(6) ITEPA 2003 apply for the purposes of section 41Z1.

There is a limit on how much qualifying employment income from, or in respect of, the associated employments is qualifying foreign employment income. The limit is the proportion of qualifying employment income that is reasonable having regard for the nature and time devoted to the respective duties inside and outside the UK and with consideration of all other relevant circumstances.