Section 41P — Income Tax (Earnings and Pensions) Act 2003: Claim for relief for qualifying new residents

Claim for relief for qualifying new residents 41P 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.

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)).