6U.K.ITEPA 2003 is amended as follows.
7(1)In section 22 (chargeable overseas earnings for year when remittance basis applies and employee ordinarily UK resident), in subsection (1), for paragraph (b) substitute—U.K.
“(b)the employee does not meet the requirement of section 26A for that year.”
(2)Accordingly—
(a)in the heading of that section, for “ordinarily UK resident” substitute “ outside section 26 ”, and
(b)in the italicised heading before that section, for “UK ordinarily resident employees” substitute “ employees outside section 26 ”.
8U.K.In section 23 (calculation of “chargeable overseas earnings”), in subsection (2), for paragraph (aa) substitute—
“(aa)the employee does not meet the requirement of section 26A for that year,”.
9(1)In section 26 (foreign earnings for year when remittance basis applies and employee not ordinarily UK resident), in subsection (1), for “is not ordinarily UK resident in” substitute “ meets the requirement of section 26A for ”.U.K.
(2)Accordingly—
(a)in the heading of that section, for “not ordinarily UK resident” substitute “ meets section 26A requirement ”, and
(b)in the italicised heading before that section, for “not UK ordinarily resident” substitute “ who meet section 26A requirement ”.
10U.K.After that section insert—
(1)An employee meets the requirement of this section for a tax year if the employee was—
(a)non-UK resident for the previous 3 tax years, or
(b)UK resident for the previous tax year but non-UK resident for the 3 tax years before that, or
(c)UK resident for the previous 2 tax years but non-UK resident for the 3 tax years before that, or
(d)non-UK resident for the previous tax year, UK resident for the tax year before that and non-UK resident for the 3 tax years before that.
(2)The residence status of the employee before the 3 years of non-UK residence is not relevant for these purposes.”
11(1)Section 41C (foreign securities income) is amended as follows.U.K.
(2)In subsection (4), for paragraph (b) substitute—
“(b)the individual does not meet the requirement of section 26A for the year (reading references there to the employee as references to the individual),”.
(3)In subsection (6), for paragraph (b) substitute—
“(b)the individual meets the requirement of section 26A for the year (reading references there to the employee as references to the individual), and”.
12U.K.In section 271 (limited exemption of removal benefits and expenses: general), in subsection (2)—
(a)in paragraph (a), for “ordinarily UK resident” substitute “ outside section 26 ”, and
(b)in paragraph (b), for “not ordinarily UK resident” substitute “ meets section 26A requirement ”.
13(1)In section 554Z9 (remittance basis: A is ordinarily UK resident), in subsection (1), for paragraph (c) substitute—U.K.
“(c)A does not meet the requirement of section 26A for the relevant tax year (reading references there to the employee as references to A),”.
(2)Accordingly, in the heading of that section, for “A is ordinarily UK resident” substitute “ A does not meet section 26A requirement ”.
14(1)In section 554Z10 (remittance basis: A is not ordinarily resident), in subsection (1), for paragraph (c) substitute—U.K.
“(c)A meets the requirement of section 26A for the relevant tax year (reading references there to the employee as references to A).”
(2)Accordingly, in the heading of that section, for “A is not ordinarily resident” substitute “ A meets section 26A requirement ”.
15(1)Section 690 (employee non-resident etc) is amended as follows.U.K.
(2)In subsection (1), for paragraph (a) substitute—
“(a)is either non-UK resident for the tax year or is UK resident but meets the requirement of section 26A for the tax year, and”.
(3)In subsection (2A), for “but not ordinarily resident in a tax year” substitute “ for a tax year but not domiciled in the United Kingdom in that tax year ”.