Section 370 — Income Tax (Earnings and Pensions) Act 2003: Travel costs and expenses where duties performed abroad: employee’s travel

Travel costs and expenses where duties performed abroad: employee’s travel 370 1 A deduction is allowed from earnings which are relevant taxable earnings if—

a the earnings include an amount in respect of—

i the provision of travel facilities for a journey made by the employee, or ii the reimbursement of expenses incurred by the employee on such a journey, and b the circumstances fall within Case A, B or C.

2 The deduction is equal to the included amount.

3 Case A is where—

a the employee is absent from the United Kingdom wholly and exclusively for the purpose of performing the duties of one or more employments, b the duties concerned can only be performed outside the United Kingdom, and c the journey is—

i a journey from a place outside the United Kingdom where such duties are performed to a place in the United Kingdom, or ii a return journey following such a journey.

4 Case B is where—

a the duties of the employment are performed partly outside the United Kingdom, b those duties are not performed on a vessel, c the journey is between a place in the United Kingdom and a place outside the United Kingdom where duties of the employment are performed, d the duties performed outside the United Kingdom can only be performed there, and e the journey is made wholly and exclusively for the purpose of performing them or returning after performing them.

5 Case C is where—

a the duties of the employment are performed partly outside the United Kingdom, b those duties are performed on a vessel, c the journey is between a place in the United Kingdom and a place outside the United Kingdom where duties of the employment are performed, d the duties performed outside the United Kingdom can only be performed there, and e the journey is made wholly and exclusively for the purpose of performing those duties, or those duties and other duties of the employment, or returning after performing them.

6 In this section “relevant taxable earnings” means general earnings for a tax year ... that—

a are taxable earnings under section 15, and b either—

i if the tax year is tax year 2024-2025 or an earlier tax year, would be taxable earnings under section 15 even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, or ii if the tax year is tax year 2025-2026 or a later tax year and the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, are not qualifying foreign general earnings within the meaning of section 41T (qualifying foreign general earnings).