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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Removal or transfer costs: expenses and benefits to which Section 271 ITEPA applies: travelling and subsistence: international moves

Section 281 ITEPA 2003

Where a foreign national comes to the UK for employment the employee may be entitled to a deduction for his or her travelling costs. Those of the spouse and family may be eligible for relief under Sections 373 and 375 ITEPA 2003 (see EIM35000 onwards). If the expenses qualify for such deduction they are not eligible expenses for the removals legislation. The effect of this is that the foreign national will be able to get the travelling costs as well as £8,000 of removal expenses tax-free.

Where a person resident in the UK goes abroad to work the travel costs and those of that person’s spouse and children may be eligible for a deduction under Sections 341, 342, 370 and 371 ITEPA 2003 (see EIM34000 onwards). If the expenses qualify for such a deduction they are not eligible expenses for the purposes of the removals legislation. The effect of this is that the employee will be able to get the travelling costs as well as £8,000 of removal expenses tax-free.

Deductions under Sections 341, 342, 370 and 371 depend on the employee remaining resident and ordinarily resident in the UK. If the employee becomes non-resident on departure these sections do not apply. But we normally treat the expenses of travelling to take up an overseas appointment as arising from that appointment. So if the employee is non-residentand performs no UK duties the expenses will be outside the charge to UK tax.