SE35001 - Travelling expenses: employees working but not domiciled in the United Kingdom - the Schedule E expenses rule

Section 198(1) ICTA 1988

This chapter explains the special rules in Section 195 ICTA 1988 that apply to the travelling expenses of employees who are not domiciled in the United Kingdom but perform the duties of an employment in this country.

However, the main rule under which an employee may obtain a deduction for his or her travelling expenses is Section 198(1) ICTA 1988. So the first step is to consider whether a deduction is due under Section 198(1). Only if a deduction is not due under Section 198(1) should you consider whether a deduction is due under Section 195.

Section 198(1) was changed with effect from 6 April 1998. For guidance on

• 1998/99 and later years, see SE32000
• 1997/98 and earlier years, see SE32350.

The rules in Section 195 did not change on 6 April 1998.