http://www.legislation.gov.uk/ukpga/2003/1/section/395CIncome Tax (Earnings and Pensions) Act 2003An Act to restate, with minor changes, certain enactments relating to income tax on employment income, pension income and social security income; and for connected purposes.texttext/xmlenStatute Law Database2026-04-22Expert Participation2026-04-06 Part 6Employment income: income which is not earnings or share-relatedChapter 2Benefits from <Substitution ChangeId="key-762eec23a9e44bb6202a260973dd765a-1558893052292" CommentaryRef="key-762eec23a9e44bb6202a260973dd765a">employer-financed retirement benefits</Substitution> <Emphasis>Benefits treated as employment income</Emphasis><Addition ChangeId="key-39bcf5817a2988c2e87d9cbe8c0086c1-1615928563028" CommentaryRef="key-39bcf5817a2988c2e87d9cbe8c0086c1">Meaning of “foreign service” in section 395B</Addition>395C1In section 395B “foreign service” means service to which subsection (2), (3), (6) or (8) applies.2This subsection applies to service in or after the tax year 2013–14—ato the extent that it consists of duties performed outside the United Kingdom in respect of which earnings would not be relevant earnings, orbif a deduction equal to the whole amount of the earnings from the employment was or would have been allowable under Chapter 6 of Part 5 (deductions from seafarers' earnings).3This subsection applies to service in or after the tax year 2003–04 but before the tax year 2013–14 such that—aany earnings from the employment would not be relevant earnings, orba deduction equal to the whole amount of the earnings from the employment was or would have been allowable under Chapter 6 of Part 5 (deductions from seafarers' earnings).4In subsection (2) “relevant earnings” means—afor service in or after the tax year 2025-26, earnings—ito which section 15 applies, andiiif the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of section 41T (qualifying foreign general earnings), andbfor service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.5In subsection (3) “relevant earnings” means—afor service in or after the tax year 2008–09, earnings—iwhich are for a tax year in which the employee is ordinarily UK resident,iito which section 15 applies, andiiito which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, andbfor service before the tax year 2008–09, general earnings to which section 15 or 21 as originally enacted applies.6This subsection applies to service before the tax year 2003–04 and after the tax year 1973–74 such that—athe emoluments from the employment were not chargeable under Case I of Schedule E, or would not have been so chargeable had there been any, orba deduction equal to the whole amount of the emoluments from the employment was or would have been allowable under a foreign earnings deduction provision.7In subsection (6) “foreign earnings deduction provision” means—aparagraph 1 of Schedule 2 to FA 1974,bparagraph 1 of Schedule 7 to FA 1977, orcsection 192A or 193(1) of ICTA.8This subsection applies to service before the tax year 1974-75 such that tax was not chargeable in respect of the emoluments of the employment—ain the tax year 1956–57 or later, under Case I of Schedule E, orbin earlier tax years, under Schedule E,or it would not have been so chargeable had there been any such emoluments.S. 395C inserted (27.4.2017) by Finance Act 2017 (c. 10), Sch. 3 para. 6S. 395C(4) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 1(15) (with Sch. 8 Pt. 3)Words in Pt. 6 Ch. 2 heading substituted (6.4.2006) by Finance Act 2004 (c. 12), ss. 249(2), 284(1) (with Sch. 36)