Part 6Employment income: income which is not earnings or share-related
Chapter 3Payments and benefits on termination of employment etc.
Exceptions and reductions
413Exception in certain cases of foreign service
1
This Chapter does not apply if the service of the employee or former employee in the employment in respect of which the payment or other benefit is received included foreign service comprising—
a
three-quarters or more of the whole period of service ending with the date of the termination or change in question, or
b
if the period of service ending with that date exceeded 10 years, the whole of the last 10 years, or
c
if the period of service ending with that date exceeded 20 years, one-half or more of that period, including any 10 of the last 20 years.
2
In subsection (1) “foreign service” means service to which subsection (3), (4) or (6) applies.
3
This subsection applies to service in or after the tax year 2003-04 such that—
F2a
any earnings from the employment would not be relevant earnings, or
b
a deduction equal to the whole amount of the earnings from the employment was or would have been allowable under Chapter 6 of Part 5 (deductions from seafarers' earnings).
F13A
In subsection (3)(a) “relevant earnings” means—
a
for service in or after the tax year 2008-09, earnings—
i
which are for a tax year in which the employee is ordinarily UK resident,
ii
to which section 15 applies, and
iii
to which that section would apply, even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, and
b
for service before the tax year 2008-09, general earnings to which section 15 or 21 as originally enacted applies.
4
This subsection applies to service before the tax year 2003-04 and after the tax year 1973-74 such that—
a
the emoluments from the employment were not chargeable under Case I of Schedule E, or would not have been so chargeable had there been any, or
b
a deduction equal to the whole amount of the emoluments from the employment was or would have been allowable under a foreign earnings deduction provision.
5
In subsection (4) “foreign earnings deduction provision” means—
a
paragraph 1 of Schedule 2 to FA 1974,
b
paragraph 1 of Schedule 7 to FA 1977, or
c
section 192A or 193(1) of ICTA.
6
This subsection applies to service before the tax year 1974-75 such that tax was not chargeable in respect of the emoluments of the employment—
a
in the tax year 1956-57 or later, under Case I of Schedule E, or
b
in earlier tax years, under Schedule E,
or it would not have been so chargeable had there been any such emoluments.