SE34060 - Foreign travel rules: duties performed wholly or partly abroad - travelling expenses of the employee’s family - the “60 day test” and examples

Section 194(2) ICTA 1988

A continuous period of 60 days or more

The “60 days” test referred to in SE34050 must be satisfied for each journey made by the employee’s family. In order to qualify the employee must be outside the United Kingdom for a continuous period of 60 days or more for the purpose of performing the duties of one or more offices or employments.

Holidays taken abroad and weekends spent abroad do not interrupt a continuous period of absence for the purposes of working abroad. This is so even if the leave is taken at the beginning or end of a period of absence.

Example 1

An employee spend 70 days working abroad between May and July in a 1999 and a further 30 days in January 2000. The employee’s spouse and children accompany her on both trips. The employer pays the costs of travel and the hotel bills for all of the family.

Comment

The travel costs of the spouse and children are allowed under Section 194(2) when they accompany the employee in the May to July period. However, the travel cost of the family for the January 2000 trip is a chargeable benefit on the employee and no deduction is available. No deduction is available in respect of the family members’ hotel bills on either of the visits.

Example 2

An employee works in Chicago for 65 days ending on 5 April 2000. His family makes 3 visits to see him during the period. The employer purchases airline tickets for the family for all journeys.

Comment

The provision of the airline tickets is a benefit chargeable on the employee, however, for 2 of the journeys a deduction is available under Section 194(2). The final visit exceeds the limit of 2 in any tax year and is not covered by Section 194(2).

Example 3

An employee worked in Washington DC form 1 March to 5 May 2000. Subject to the other conditions, she is entitled to claim a deduction for 2 family visits in the period 1 March to 5 April (in tax year 1999/2000) and 2 further visits in the period 6 April to 5 May (in tax year 2000/2001).