Part 5 U.K. Employment income: deductions allowed from earnings

Chapter 5 U.K. Deductions for earnings representing benefits or reimbursed expenses

Travel costs and expenses of [F1 non-resident or qualifying new resident] employees where duties performed in UK U.K.

Textual Amendments

F1 Words in s. 373 cross-heading substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 1(11) (with Sch. 8 Pt. 3)

373 [F2 Non-resident or qualifying new resident] employee’s travel costs and expenses where duties performed in UK U.K.

(1) This section applies if a person (“the employee”) who is [F3 non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)]—

(a) receives earnings from an employment for duties performed in the United Kingdom, and

(b) an amount is included in the earnings 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.

(2) A deduction is allowed from earnings from the employment which are earnings charged on receipt if the journey meets conditions A and B.

(3) Condition A is that the journey ends on, or during the period of 5 years beginning with, a date that is a qualifying arrival date in relation to the employee (see section 375).

(4) Condition B is that the journey is made—

(a) from [F4 a country] outside the United Kingdom in which the employee normally lives [F5 at the time the journey is made] to a place in the United Kingdom in order to perform duties of the employment, or

(b) to [F6 such a] country from a place in the United Kingdom in order to return to [F6 such a] country after performing such duties.

(5) If the journey is wholly for a purpose specified in subsection (4), the deduction is equal to the included amount.

(6) If the journey is only partly for such a purpose, the deduction is equal to so much of the included amount as is properly attributable to that purpose.

F7 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Words in s. 373 heading substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 1(12)(a) (with Sch. 8 Pt. 3)

F3 Words in s. 373(1) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 1(12)(b) (with Sch. 8 Pt. 3)

F4 Words in s. 373(4)(a) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 1(12)(c)(i) (with Sch. 8 Pt. 3)

F5 Words in s. 373(4)(a) inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 1(12)(c)(ii) (with Sch. 8 Pt. 3)

F6 Words in s. 373(4)(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(12)(d) (with Sch. 8 Pt. 3)

F7 S. 373(7) omitted (for the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 1(12)(e) (with Sch. 8 Pt. 3)