Section 41P | Claim for relief for qualifying new residents ^F1

(1)Where an individual has made a foreign employment election, the individual may make a claim for relief for the qualifying year or any subsequent tax year (“a foreign employment relief claim”).

(2)Where an individual makes a foreign employment relief claim for a tax year, the individual is entitled to relief that is equal to so much of the net taxable employment income for that year as—

(a)reflects qualifying foreign employment income (see section 41Q), and

(b)is identified as such in the claim.

(3)But subsection (2) only applies to the extent the total amount of the relief given does not exceed the limit (see section 41R).

(4)The relief is given by deducting the amount of the relief in calculating the individual's net income for the tax year for which the claim is made (see Step 2 of the calculation in section 23 of ITA 2007).

(4A)But a deduction for that purpose is to be made only from qualifying foreign employment income.^F2

(5)A foreign employment relief claim must be made in a return.

(6)A foreign employment relief claim for a tax year must be made before the end of the period of 12 months beginning with 31 January after the end of that tax year.

(7)A foreign employment relief claim may not be made as a consequential claim (within the meaning of section 43C(5) of TMA 1970) if the circumstances which give rise to the consequential claim result from a loss of tax brought about carelessly or deliberately by the individual or a person acting on the individual’s behalf.

(8)For the purposes of this Chapter “net taxable employment income”, in relation to a tax year, means the employment income on which the individual is charged to tax for the tax year (see section 9(1)).