SCHEDULES
SCHEDULE 45Statutory residence test
PART 3Split year treatment
Special charging rules for employment income
64
1
Section 329 (deduction from earnings not to exceed earnings) is amended as follows.
2
After subsection (1) insert—
1A
If the earnings from which a deduction allowed under this Part is deductible include earnings that are “excluded” within the meaning of section 15(1A)—
a
the amount of the deduction allowed is a proportion of the amount that would be allowed under this Part if the tax year were not a split year, and
b
that proportion is equal to the proportion that the part of the earnings that is not “excluded” bears to the total earnings.
3
In subsection (2), after “those earnings” insert “
(or, in a case within subsection (1A), the part of those earnings that is not “excluded”)
”
.
4
In subsection (3), after “the earnings” insert “
(or, in a case within subsection (1A), the part of the earnings that is not “excluded”)
”
.