2.—(1) A payment of, or contribution towards, expenses reasonably incurred by a person in relation to a change of residence in connection with the commencement of, or an alteration in the duties of the person’s employment or the place where those duties are normally to be performed is disregarded if the conditions in sub-paragraphs (2) to (6) are met.
(2) The first condition is that—
(a)the payment or contribution—
[F1(i)is not, by virtue of section 271 of ITEPA 2003 (limited exemption of removal benefits and expenses) liable to income tax as general earnings under that Act; or]
(ii)would not have been so regarded, but is in fact disregarded [F2by virtue of another provision of ITEPA 2003; F3...]
F3(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) The second condition is that the change of residence must result from—
(a)the employee becoming employed by an employer;
(b)an alteration of the duties of the employee’s employment (where his employer remains the same); or
(c)an alteration of the place where the employee is normally to perform the duties of his employment (where both the employer and the duties which the employee is to perform remains the same).
(4) The third condition is that the change of residence must be made wholly or mainly to allow the employee to have his residence within a reasonable daily travelling distance of—
(a)the place where he performs, or is to perform, the duties of his employment (in a case falling within paragraph (3)(a);
(b)the place where he performs, or is to perform, the duties of his employment (in a case falling within paragraph (3)(b); or
(c)the new place where he performs, or is to perform, the duties of his employment (in a case falling within paragraph (3)(c).
Textual Amendments
F1Sch. 3 Pt. 8 para. 2(a)(i) substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(6)(a)(i)
F2Words in sch. 3 Pt. 8 para. 2(a)(ii) substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(6)(a)(ii)
F3Sch. 3 Pt. VIII para. 2(2)(b) and word omitted (6.4.2012) by virtue of The Social Security (Contributions) (Amendment No. 2) Regulations 2012 (S.I. 2012/817), regs. 1(1), 7(4)(a)