Part 5

Employment income: deductions allowed from earnings
Chapter 5

Deductions for earnings representing benefits or reimbursed expenses

Travel costs and expenses of non-resident or qualifying new resident employees where duties performed in UK

Non-resident or qualifying new resident employee’s travel costs and expenses where duties performed in UK
373
1
This section applies if a person (“the employee”) who is 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 a country outside the United Kingdom in which the employee normally lives 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 such a country from a place in the United Kingdom in order to return to 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.
7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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)
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)
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)
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)
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)
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)
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)