SE35050 - Travelling expenses: employees working but not domiciled in the United Kingdom - travelling expenses of the employee’s family
Section 195 (6) - (10) ICTA 1988
Summary
This page is concerned with the travelling expenses allowed in respect of an employee’s family travelling between the United Kingdom and their normal place of abode in another country.
Conditions
The employee must:
- Be domiciled in a state other than the United Kingdom
- Receive emoluments from duties of an office or employment performed in the United Kingdom
Other factors:
- The cost of travel by family members is borne or reimbursed by (or on behalf of) the employer and
- is an assessable emolument of the employee
- The employee is present in the United Kingdom for the purpose of performing the duties of one or more offices or employments for a continuous period of 60 days or more (see below).
- The journey is undertaken by the family to either:
- accompany the employee at the beginning of the continuous period of 60 day, or
- visit the employee during such a period or to return afterwards.
- The journey is made within five years of a qualifying arrival in the United Kingdom by the employee (see SE35060).
Nature of the deduction
Allow the cost of up to:
- two inward journeys (from the place where the employee normally lives to the United Kingdom) and
- two outward journeys (from the United Kingdom to the place where the employee normally lives)
in any year of assessment by each member of the employee's family, if all of the above conditions are satisfied.
Meaning of 'family'
'Family' for this purpose includes:
- the employee's spouse and
- the employee's children. The term includes any stepchild, adopted child or illegitimate child but not a child over the age of 18 at the time of leaving the United Kingdom.
Additional information
The deduction only covers the travel costs of the family. Once
the family arrives in the United Kingdom no deduction can be given
for their board and lodging. If the employer meets the cost of the
family’s board and lodging the cost is a chargeable emolument
of the employee.
If the journey is partly for another purpose, limit the
deduction to the amount attributable to the qualifying purpose.
The '60 days rule'
The "60 days rule" must be satisfied for each journey made by the employee's family. For the purposes of Section 195(6) only, employees will satisfy the rule where -
- they spend at least two thirds of their working days in the UK over a period of 60 days or more; and
they are present in the UK for the purpose of performing the duties of their employment both at the start and at the end of this period. SE35055 gives examples of how the "60 days rule" applies in a Section 195 context.
