SE03116 - Removal or transfer costs: eligible expenses and benefits: travelling and subsistence: international moves

Paragraphs 12 and 21 Schedule 11A ICTA 1988

International moves

Where a foreign national comes to the UK for employment the employee may be entitled to a deduction for his/her travelling costs. Those of the spouse and family may be eligible for relief under Section 195 ICTA 1988 ( SE35000 onwards). If the expenses do 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 Section 193 or 194 ( SE34000 onwards). If the expenses do 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 193 and 194 depend on the employee remaining resident and ordinarily resident in the UK. If the employee becomes non-resident on departure these sections of the Act 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.