Section 395C | Meaning of “foreign service” in section 395B ^F1

(1)In section 395B “foreign service” means service to which subsection (2), (3), (6) or (8) applies.^F1

(2)This subsection applies to service in or after the tax year 2013–14—^F1

(a)to the extent that it consists of duties performed outside the United Kingdom in respect of which earnings would not be relevant earnings, or^F1

(b)if a deduction equal to the whole amount of the earnings from the employment was or would have been allowable under Chapter 6 of Part 5 (deductions from seafarers' earnings).^F1

(3)This subsection applies to service in or after the tax year 2003–04 but before the tax year 2013–14 such that—^F1

(a)any earnings from the employment would not be relevant earnings, or^F1

(b)a deduction equal to the whole amount of the earnings from the employment was or would have been allowable under Chapter 6 of Part 5 (deductions from seafarers' earnings).^F1

(4)In subsection (2) “relevant earnings” means—^F2F1

(a)for service in or after the tax year 2025-26, earnings—^F1F2

(i)to which section 15 applies, and^F1F2

(ii)if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of section 41T (qualifying foreign general earnings), and^F1F2

(b)for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.^F1F2

(5)In subsection (3) “relevant earnings” means—^F1

(a)for service in or after the tax year 2008–09, earnings—^F1

(i)which are for a tax year in which the employee is ordinarily UK resident,^F1

(ii)to which section 15 applies, and^F1

(iii)to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, and^F1

(b)for service before the tax year 2008–09, general earnings to which section 15 or 21 as originally enacted applies.^F1

(6)This subsection applies to service before the tax year 2003–04 and after the tax year 1973–74 such that—^F1

(a)the emoluments from the employment were not chargeable under Case I of Schedule E, or would not have been so chargeable had there been any, or^F1

(b)a deduction equal to the whole amount of the emoluments from the employment was or would have been allowable under a foreign earnings deduction provision.^F1

(7)In subsection (6) “foreign earnings deduction provision” means—^F1

(a)paragraph 1 of Schedule 2 to FA 1974,^F1

(b)paragraph 1 of Schedule 7 to FA 1977, or^F1

(c)section 192A or 193(1) of ICTA.^F1

(8)This subsection applies to service before the tax year 1974-75 such that tax was not chargeable in respect of the emoluments of the employment—^F1

(a)in the tax year 1956–57 or later, under Case I of Schedule E, or^F1

(b)in earlier tax years, under Schedule E,^F1

or it would not have been so chargeable had there been any such emoluments.