SE35040 - Travelling expenses: employees working but not domiciled in the United Kingdom - meaning of 'country outside the United Kingdom in which he normally lives'

Section 195 (9) ICTA 1988

The phrase,

'country outside the United Kingdom in which he (the employee) normally lives'

may not be easy to apply in some cases. Section 195 (5) refers to the employee's 'usual place of abode' but subsection (9) defines that phrase as meaning 'the country (outside the United Kingdom) in which he normally lives.

In order to satisfy the condition, it is not necessary for the employee to maintain a residence in that country.

Example

A Canadian citizen who has lived in Canada for most of his life should be regarded, for the whole of the five-year period ( SE35060), as living there normally. This will apply even if his family relocates to the United Kingdom and set up home here. However, if the family accompany the employee you need to establish that the employee has not acquired a domicile within the United Kingdom (see SE41050) since it is a condition of the relief under Section 195 that the employee has a foreign domicile.