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HMRC internal manual

Employment Income Manual

Dispensations: international aspects: foreign travel and subsistence


The guidance on this page applies for the tax years up to and including 2015-16.  For tax years 2016-17 onwards dispensations have been replaced by an exemption for amounts which would otherwise be deductible. See EIM30200 onwards.

Dispensations may be given for travelling and subsistence expenses incurred oninternational journeys provided that the expenses would be fully allowable under thelegislation and instructions shown in the following table.

Circumstances Relevant legislation in ITEPA 2003 and instructions Comments
Travel expenses Sections 337 and 338 and EIM32000 onwards Do not give a dispensation for journeys that are wholly or partly for a holiday
Overseas travel of employees ordinarily resident in the United Kingdom but who work abroad Section 341 and EIM35001 onwards Chapter 9 of booklet 480 briefly explains the rules for employers. You can normally accept without enquiry that the employee is resident in the United Kingdom provided there is no indication to the contrary.
Overseas travel of employees working in, but who are not domiciled in the United Kingdom Section 373 and EIM35010 onwards Because domicile is relevant a dispensation can only be given for the named individual. The dispensation must specify the date when it ceases to apply (see EIM35130).
A copy of the dispensation should be kept in the employee’s own file as well as in the 46 file