Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Part 5 U.K. Employment income: deductions allowed from earnings

Chapter 2 U.K. Deductions for employee’s expenses

Special rules for earnings with a foreign element U.K.

355 Deductions for corresponding payments by non-domiciled employees with foreign employers U.K.

(1) An employee may make a claim to the Board of Inland Revenue under this section if conditions A to D are met.

(2) Condition A is that the employee is not domiciled in the United Kingdom.

(3) Condition B is that the employment is with a foreign employer.

(4) Condition C is that the employee has made a payment out of earnings from the employment.

(5) Condition D is that the payment does not reduce the employee’s liability to United Kingdom income tax, but was made in circumstances corresponding to those in which it would do so.

(6) If the Board are satisfied that conditions A to D are met, they may allow the payment as a deduction under this Chapter.