PART 5 continued CHAPTER 5 continued
(2) The deduction is equal to the included amount.
(3) Condition A is that the employee is absent from the United Kingdom for a continuous period of at least 60 days for the purpose of performing the duties of one or more employments.
(4) Condition B is that the journey is between a place in the United Kingdom and a place outside the United Kingdom where such duties are performed.
(5) Condition C is that the employee’s spouse or child is—
(a) accompanying the employee at the beginning of the period of absence,
(b) visiting the employee during that period, or
(c) returning to a place in the United Kingdom after so accompanying or visiting the employee.
(6) A deduction is not allowed under this section for more than two outward and two return journeys by the same person in a tax year.
(7) 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 outward journey.
For the purposes of—
(a) section 370 (employee’s travel costs and expenses where duties performed abroad), and
(b) section 371 (visiting spouse’s or child’s travel costs and expenses where duties performed abroad),
whether duties performed on a vessel are performed in or outside the United Kingdom is determined without regard to section 40(2) (certain duties treated as performed in UK).
(1) This section applies if a person (“the employee”) who is not domiciled in the United Kingdom—
(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 the country outside the United Kingdom in which the employee normally lives to a place in the United Kingdom in order to perform duties of the employment, or
(b) to that country from a place in the United Kingdom in order to return to that 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.
(1) This section applies if a person (“the employee”) who is not domiciled in the United Kingdom—
(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 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 the country outside the United Kingdom in which the employee normally lives 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 or child is—
(a) accompanying the employee at the beginning of that period,
(b) visiting the employee during that period, or
(c) returning to the country outside the United Kingdom in which the employee normally lives, 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.
(1) For the purposes of sections 373(3) and 374(3), a date is a qualifying arrival date in relation to a person if—
(a) it is a date on which the person arrives in the United Kingdom to perform duties of an employment from which the person receives earnings for duties performed in the United Kingdom, and
(b) condition A or B is met.
(2) Condition A is that the person has not been in the United Kingdom for any purpose during the period of 2 years ending with the day before the date.
(3) Condition B is that the person was not resident in the United Kingdom in either of the 2 tax years preceding the tax year in which the date falls.
(4) If, in a case where condition B applies, there are 2 or more dates in the tax year on which the person arrives in the United Kingdom to perform duties of an employment from which the person receives earnings for duties performed in the United Kingdom, the qualifying arrival date is the earliest of them.
(1) A deduction from earnings from an employment is allowed if—
(a) the duties of the employment are performed wholly outside the United Kingdom,
(b) the employee is resident and ordinarily resident in the United Kingdom,
(c) in a case where the employer is a foreign employer, the employee is domiciled in the United Kingdom, and
(d) the earnings include an amount in respect of—
(i) the provision of accommodation or subsistence outside the United Kingdom for the employee for the purpose of enabling the employee to perform the duties of the employment, or
(ii) the reimbursement of expenses incurred by the employee on such accommodation or subsistence for that purpose.
(2) If the accommodation or subsistence is wholly for that purpose, the deduction is equal to the included amount.
(3) If the accommodation or subsistence is only partly for that purpose, the deduction is equal to so much of the included amount as is properly attributable to that purpose.
(4) Subsection (5) applies if in the tax year the employment is in substance one whose duties fall to be performed outside the United Kingdom.
(5) Duties of the employment performed in the United Kingdom, whose performance is merely incidental to the performance of duties outside the United Kingdom, are to be treated for the purposes of subsection (1)(a) as performed outside the United Kingdom.
(1) This section applies if—
(a) there is a special threat to an employee’s personal physical security which arises wholly or mainly because of the employee’s employment,
(b) an asset or service which improves personal security is provided for or used by the employee to meet the threat,
(c) the employee’s earnings include an amount in respect of—
(i) the provision or use, or
(ii) expenses connected with it,
because the whole or part of the cost of the provision or use is borne, or the expenses are reimbursed to the employee, by or on behalf of another person (“the provider”), and
(d) the provider’s sole object in bearing the whole or part of the cost or reimbursing the expenses is meeting the threat.
(2) In the case of such an asset, if the provider intends it to be used solely for the purpose of improving personal physical security, a deduction equal to the included amount is allowed.
(3) If the provider intends the asset to be used solely to improve personal physical security, any use of the asset incidental to that purpose is ignored.
(4) If the provider intends the asset to be used only partly to improve personal physical security, a deduction equal to the proportion of the included amount attributable to the intended use for that purpose is allowed.
(5) In determining whether or not this section applies in relation to an asset, it does not matter if—
(a) the asset becomes fixed to land (even a dwelling or grounds), or
(b) the employee is or becomes entitled—
(i) to the property in the asset, or
(ii) if the asset is a fixture, to any estate or interest in the land concerned.
(6) In the case of a service within subsection (1), if the benefit resulting to the employee consists wholly or mainly of an improvement of the employee’s personal physical security, a deduction equal to the included amount is allowed.
(7) The fact that an asset or a service improves the personal physical security of a member of the employee’s family or household, as well as that of the employee, does not prevent a deduction being allowed.
(8) In this section—
“asset” includes equipment or a structure (such as a wall), but not a car, ship or aircraft or a dwelling or grounds appurtenant to a dwelling, and
“service” does not include a dwelling or grounds appurtenant to a dwelling.
(1) A deduction is allowed from earnings from an employment as a seafarer if—
(a) the earnings are taxable earnings under section 15 or 21 (earnings for year when employee resident and ordinarily resident in UK),
(b) the duties of the employment are performed wholly or partly outside the United Kingdom, and
(c) any of those duties are performed in the course of an eligible period.
(2) In this Chapter “eligible period” means a period consisting of at least 365 days which is either—
(a) a period of consecutive days of absence from the United Kingdom, or
(b) a combined period.
(3) A combined period is a period—
(a) at least half of the days in which are days of absence from the United Kingdom, and
(b) which consists of 3 consecutive periods, A, B and C, where—
A is a period of consecutive days of absence from the United Kingdom or a period which is itself a combined period,
B is a period of not more than 183 days, and
C is a period of consecutive days of absence from the United Kingdom.
(4) For this purpose a person is only regarded as being absent from the United Kingdom on any day if absent at the end of the day.
(1) The deduction under section 378—
(a) is allowed from the amount of the earnings from the employment attributable to the eligible period, and
(b) is equal to that amount.
(2) Earnings from the employment for a period of leave immediately after the eligible period are to be regarded as earnings attributable to the eligible period if or to the extent that they are earnings for the tax year in which the eligible period ends.
(3) This section is subject to section 380 (limit on deduction where UK duties etc. make amount unreasonable).
(1) If—
(a) section 378 (deduction from seafarers' earnings: eligibility) applies to earnings for a tax year, and
(b) in the tax year the employee performs some of the duties of the employment as a seafarer or of any associated employments in the United Kingdom,
the amount of earnings in respect of which the deduction under this Chapter is allowed is subject to the following limitation.
(2) The amount is restricted to the proportion of the aggregate earnings for that year from the employment as a seafarer and all associated employments that is reasonable having regard to—
(a) the nature of and time devoted to the duties performed outside and in the United Kingdom, and
(b) all other relevant circumstances.
(3) In this section “associated employments” means employments with the same employer or with associated employers.
(4) The same rules for determining whether employers are associated apply for the purposes of this section as apply for section 24(4) (limit on chargeable overseas earnings where duties of associated employment performed in UK) (see section 24(5)).
For the purposes of sections 379 and 380, the amount of the earnings from an employment for a tax year is the amount remaining after any deductions under—
(a) section 232 (giving effect to mileage allowance relief),
(b) Chapter 2, 3, 4 or 5 of this Part,
(c) section 592(7) of ICTA (contributions to exempt approved schemes),
(d) section 594(1) of ICTA (contributions to exempt statutory schemes), and
(e) section 262 of CAA 2001 (capital allowances to be given effect by treating them as deductions from earnings).
(1) Duties which a person performs on a ship engaged—
(a) on a voyage beginning or ending outside the United Kingdom (but excluding any part of it beginning and ending in the United Kingdom), or
(b) on a part beginning or ending outside the United Kingdom of any other voyage,
are treated as performed outside the United Kingdom for the purposes of this Chapter.
(2) Duties which a person performs on a vessel engaged on a voyage not extending to a port outside the United Kingdom are treated for the purposes of this Chapter as performed in the United Kingdom.
(3) For the purposes of subsection (1) the areas designated under section 1(7) of the Continental Shelf Act 1964 (c. 29) are treated as part of the United Kingdom.
(4) Subsection (1) applies despite anything to the contrary in section 40 (duties on board vessel or aircraft).
(1) For the purposes of section 378(1)(b) (deduction from seafarers' earnings: eligibility), duties of an employment as a seafarer which are performed outside the United Kingdom are treated as performed in the United Kingdom if conditions A and B are met.
(2) Condition A is that in the tax year in which the duties are performed the employment is in substance one whose duties fall to be performed in the United Kingdom.
(3) Condition B is that the performance of the duties performed outside the United Kingdom is merely incidental to the performance of duties in the United Kingdom.
(4) Section 39 (duties in UK merely incidental to duties outside UK) does not affect the question—
(a) where any duties are performed, or
(b) whether a person is absent from the United Kingdom,
for the purposes of section 378(1) to (3).
(1) In this Chapter employment “as a seafarer” means an employment (other than Crown employment) consisting of the performance of duties on a ship or of such duties and others incidental to them.
(2) In this section “Crown employment” means employment under the Crown—
(a) which is of a public nature, and
(b) the earnings from which are payable out of the public revenue of the United Kingdom or of Northern Ireland.
In this Chapter “ship” does not include—
(a) any offshore installation within the meaning of the Mineral Workings (Offshore Installations) Act 1971 (c. 61), or
(b) what would be such an installation if the references in that Act to controlled waters were to any waters.