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 spouse’s , civil partner's or child’s travel costs and expenses where duties performed in UK
374
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’s spouse , civil partner or child, 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 conditions A to C are met.
3
Condition A is that the journey—
a
is made between a country outside the United Kingdom in which the employee normally lives at the time the journey is made and a place in the United Kingdom, and
b
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 employee is in the United Kingdom for a continuous period of at least 60 days for the purpose of performing the duties of one or more employments from which the employee receives earnings for duties performed in the United Kingdom.
5
Condition C is that the employee’s spouse , civil partner or child is—
a
accompanying the employee at the beginning of that period,
b
visiting the employee during that period, or
c
returning to a country outside the United Kingdom in which the employee normally lives at the time the journey is made, after so accompanying or visiting the employee.
6
If the journey is wholly for the purpose of so accompanying or visiting the employee or so returning, the deduction is equal to the included amount.
7
If the journey is only partly for that purpose, the deduction is equal to so much of the included amount as is properly attributable to that purpose.
8
A deduction is not allowed under this section for more than two inward journeys and two return journeys by the same person in a tax year.
9
In this section “child” includes a stepchild and an illegitimate child, but not a person who is 18 or over at the beginning of the inward journey.
10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Words in s. 374(1)(b)(i) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 148(2)
Words in s. 374(5) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 148(2)
Words in s. 374 heading inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 148(3)
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. 374 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(13)(a) (with Sch. 8 Pt. 3)
Words in s. 374(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(13)(b) (with Sch. 8 Pt. 3)
S. 374(10) 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(13)(e) (with Sch. 8 Pt. 3)
Words in s. 374(3)(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(13)(c)(i) (with Sch. 8 Pt. 3)
Words in s. 374(3)(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(13)(c)(ii) (with Sch. 8 Pt. 3)
Words in s. 374(5)(c) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 1(13)(d)(i) (with Sch. 8 Pt. 3)
Words in s. 374(5)(c) inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 1(13)(d)(ii) (with Sch. 8 Pt. 3)