395CMeaning of “foreign service” in section 395B

1

In section 395B “foreign service” means service to which subsection (2), (3), (6) or (8) applies.

2

This subsection applies to service in or after the tax year 2013–14—

a

to the extent that it consists of duties performed outside the United Kingdom in respect of which earnings would not be relevant earnings, or

b

if 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).

3

This subsection applies to service in or after the tax year 2003–04 but before the tax year 2013–14 such that—

a

any earnings from the employment would not be relevant earnings, or

b

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).

4

In subsection (2) “relevant earnings” means earnings for a tax year that are 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.

5

In subsection (3) “relevant earnings” means—

a

for service in or after the tax year 2008–09, earnings—

i

which are for a tax year in which the employee is ordinarily UK resident,

ii

to which section 15 applies, and

iii

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, and

b

for service before the tax year 2008–09, general earnings to which section 15 or 21 as originally enacted applies.

6

This subsection applies to service before the tax year 2003–04 and after the tax year 1973–74 such that—

a

the emoluments from the employment were not chargeable under Case I of Schedule E, or would not have been so chargeable had there been any, or

b

a deduction equal to the whole amount of the emoluments from the employment was or would have been allowable under a foreign earnings deduction provision.

7

In subsection (6) “foreign earnings deduction provision” means—

a

paragraph 1 of Schedule 2 to FA 1974,

b

paragraph 1 of Schedule 7 to FA 1977, or

c

section 192A or 193(1) of ICTA.

8

This subsection applies to service before the tax year 1974-75 such that tax was not chargeable in respect of the emoluments of the employment—

a

in the tax year 1956–57 or later, under Case I of Schedule E, or

b

in earlier tax years, under Schedule E,

or it would not have been so chargeable had there been any such emoluments.