Section 395C — Income Tax (Earnings and Pensions) Act 2003: Meaning of “foreign service” in section 395B

Meaning of “foreign service” in section 395B 395C 1 In section 395B “ foreign service ” means service to which subsection (2), (3), (6) or (8) applies.

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

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 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).

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

a any earnings from the employment would not be relevant earnings, or 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).

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

a for service in or after the tax year 2025-26, earnings—

i to which section 15 applies, and 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 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.

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

a for service in or after the tax year 2008–09, earnings—

i which are for a tax year in which the employee is ordinarily UK resident, ii to which section 15 applies, and 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basis) for that year, and b for service before the tax year 2008–09, general earnings to which section 15 or 21 as originally enacted applies.

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

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 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.

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

a paragraph 1 of Schedule 2 to FA 1974, b paragraph 1 of Schedule 7 to FA 1977, or c section 192A or 193(1) of ICTA.

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—

a in the tax year 1956–57 or later, under Case I of Schedule E, or b in earlier tax years, under Schedule E, or it would not have been so chargeable had there been any such emoluments.