Finance Act 2013

14 (1) The third automatic overseas test is that— U.K.

(a) P works sufficient hours overseas, as assessed over year X,

(b) during year X, there are no significant breaks from overseas work,

(c) the number of days in year X on which P does more than 3 hours' work in the UK is less than 31, and

(d) the number of days in year X falling within sub-paragraph (2) is less than 91.

(2) A day falls within this sub-paragraph if—

(a) it is a day spent by P in the UK, but

(b) it is not a day that is treated under paragraph 23(4) as a day spent by P in the UK.

(3) Take the following steps to work out whether P works “sufficient hours overseas” as assessed over year X—

• Step 1 Identify any days in year X on which P does more than 3 hours' work in the UK, including ones on which P also does work overseas on the same day. The days so identified are referred to as “disregarded days”.

• Step 2 Add up (for all employments held and trades carried on by P) the total number of hours that P works overseas in year X, but ignoring any hours that P works overseas on disregarded days. The result is referred to as P's “net overseas hours”.

• Step 3 Subtract from 365 (or 366 if year X includes 29 February)—

  (a)

  the total number of disregarded days, and

  (b)

  any days that are allowed to be subtracted, in accordance with the rules in paragraph 28 of this Schedule, to take account of periods of leave and gaps between employments.

  The result is referred to as the “reference period”.

• Step 4 Divide the reference period by 7. If the answer is more than 1 and is not a whole number, round down to the nearest whole number. If the answer is less than 1, round up to 1.

• Step 5 Divide P's net overseas hours by the number resulting from step 4.

  If the answer is 35 or more, P is considered to work “sufficient hours overseas” as assessed over year X.

(4) This paragraph does not apply to P if—

(a) P has a relevant job on board a vehicle, aircraft or ship at any time in year X, and

(b) at least 6 of the trips that P makes in year X as part of that job are cross-border trips that either begin in the UK, end in the UK or begin and end in the UK.