Section 41V — Income Tax (Earnings and Pensions) Act 2003: Qualifying foreign third party income

Qualifying foreign third party income 41V 1 For the purposes of this Chapter, “third party income” is an amount that counts under Chapter 2 of Part 7A (treatment of relevant step for income tax purposes) as employment income in respect of an employment.

2 Third party income is “qualifying third party income”—

a if it is in respect of an employment the duties of which are performed wholly or partly outside the UK during the qualifying year, and b to the extent that the value of the relevant step that counts as employment income (see section 554Z3) is—

i “for” the qualifying year determined in accordance with section 554Z4(2),

and ii if the qualifying year is a split year as respects the individual, attributable to the UK part of the year.

3 Any attribution required for the purposes of subsection (2)(b)(ii) is to be done on a just and reasonable basis.

4 Qualifying third party income is “qualifying foreign third party income” to the extent that it is not in respect of duties performed in the United Kingdom.

5 The extent to which qualifying third party income is not in respect of duties performed in the United Kingdom is to be determined on a just and reasonable basis.