Section 41M — Income Tax (Earnings and Pensions) Act 2003: Foreign employment election for qualifying new residents

Foreign employment election for qualifying new residents 41M 1 This Chapter applies if an individual is a qualifying new resident for a tax year (the “qualifying year”).

2 An individual is a qualifying new resident for a tax year for the purposes of this Chapter if the individual is a qualifying new resident for the tax year for the purposes of Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).

3 The individual may make an election for the qualifying year under this section (“a foreign employment election”).

4 Section 41P makes provision about a claim for relief—

a which an individual can make for the qualifying year or any subsequent tax year, where the individual has made a foreign employment election, and b which entitles the individual to relief in that year calculated by reference to employment income that is in respect of the qualifying year.

5 Sections 41Q (amount of relief available) and 41R (limit on relief) set out how to determine the amount of relief to which the individual is entitled.

6 See also—

a sections 845C to 845E of ITTOIA 2005, which set out some income tax consequences of a foreign employment election, and b section 1K of TCGA 1992, which provides for the loss of the individual’s annual exempt amount for capital gains tax where a foreign employment election is made.

7 A foreign employment election must be made in a return.

8 A foreign employment election for the qualifying year must be made before the end of the period of 12 months beginning with 31 January after the end of the qualifying year.

9 A foreign employment election 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.

10 For the purposes of this Chapter—

a “ return ” means a return under section 8 of TMA 1970 (personal return),

b references to a claim or election being included in a return include a claim or election being so included as a result of an amendment of the return, and c subsections (5) to (7) of section 118 of TMA 1970 (loss of tax brought about carelessly or deliberately) apply as they apply for the purposes of that Act.