For two out of five years' total service, an employee is not
resident and ordinarily resident in the UK and so the full
exception in
EIM13690 is not available.
The foreign service reduction of
EIM13700 is calculated as follows:
| Payments and benefits within Section 401 ITEPA 2003 | £100,000 |
| Less threshold (see EIM13700 and example EIM13980). | £30,000 |
| Amount charged to tax (see EIM13700) | £70,000 |
| Foreign service reduction = £70,000 x 2/5 | £28,000 |
| Section 401 ITEPA 2003 charge | £42,000 |
