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-resident and performs no UK duties the expenses
will be outside the charge to UK tax.
