SE34140 - Foreign travel: inter-relationship of the statutory rules

Sections 194 and 195 ICTA 1988

The rules relating to overseas travel by employees who are Resident and Ordinarily Resident in the United Kingdom (see SE34020 – SE34080) and to travel by employees not domiciled in the United Kingdom ( SE35000 onwards), are not mutually exclusive.

An employee who is not domiciled in the United Kingdom may be able to satisfy the conditions relating to journeys abroad under SE34040 – SE34050 if the duties are performed partly outside the United Kingdom. Claims should be analysed carefully to see which relieving provisions apply.

Example

An American citizen was assigned to work in the United Kingdom for 5 years. The family relocated at the beginning of the assignment with the costs being met by the employer. A successful claim was made under Section 195(6) (see SE35050). After a couple of years the employee agreed to work temporarily in Paris for 3 months. The family visited twice during the course of the assignment. The employer paid the family’s travel costs. A deduction is available by virtue of Section 194(2) (see SE34050).