Part 5

Employment income: deductions allowed from earnings
Chapter 5

Deductions for earnings representing benefits or reimbursed expenses

Travel costs and expenses where duties performed abroad

Travel costs and expenses where duties performed abroad: employee’s travel
370
1
A deduction is allowed from earnings which are relevant taxable earnings if—
a
the earnings include an amount in respect of—
i
the provision of travel facilities for a journey made by the employee, or
ii
the reimbursement of expenses incurred by the employee on such a journey, and
b
the circumstances fall within Case A, B or C.
2
The deduction is equal to the included amount.
3
Case A is where—
a
the employee is absent from the United Kingdom wholly and exclusively for the purpose of performing the duties of one or more employments,
b
the duties concerned can only be performed outside the United Kingdom, and
c
the journey is—
i
a journey from a place outside the United Kingdom where such duties are performed to a place in the United Kingdom, or
ii
a return journey following such a journey.
4
Case B is where—
a
the duties of the employment are performed partly outside the United Kingdom,
b
those duties are not performed on a vessel,
c
the journey is between a place in the United Kingdom and a place outside the United Kingdom where duties of the employment are performed,
d
the duties performed outside the United Kingdom can only be performed there, and
e
the journey is made wholly and exclusively for the purpose of performing them or returning after performing them.
5
Case C is where—
a
the duties of the employment are performed partly outside the United Kingdom,
b
those duties are performed on a vessel,
c
the journey is between a place in the United Kingdom and a place outside the United Kingdom where duties of the employment are performed,
d
the duties performed outside the United Kingdom can only be performed there, and
e
the journey is made wholly and exclusively for the purpose of performing those duties, or those duties and other duties of the employment, or returning after performing them.
6
In this section “relevant taxable earnings” means general earnings for a tax year
... that—
a
are taxable earnings under section 15, and
b
either—
i
if the tax year is tax year 2024-2025 or an earlier tax year, would be taxable earnings under section 15 even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, or
ii
if the tax year is tax year 2025-2026 or a later tax year and the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, are not qualifying foreign general earnings within the meaning of section 41T (qualifying foreign general earnings).
Words in s. 370(6) omitted (with effect in accordance with Sch. 46 para. 72 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 35
Words in s. 370(1) substituted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 27(2)
S. 370(6) inserted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 27(3)
S. 370(6)(b) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 1(10) (with Sch. 8 Pt. 3)