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Sections 337 to 340A and 373 to 375 ITEPA 2003

This chapter explains the special rules in Sections 373 to 375 ITEPA 2003 that apply to the travelling expenses of employees who are non-UK resident or a qualifying new resident but perform the duties of an employment in the UK.

However, the main rules under which an employee may obtain a deduction for his or her travelling expenses are in Sections 337 to 340A ITEPA 2003. So the first step is to consider whether a deduction is due under those provisions. Only if a deduction is not due under Sections 337 to 340A should you consider whether a deduction is due under Sections 373 to 375.

An individual is a qualifying new resident if he or she is UK resident in the tax year and was not UK resident throughout the previous 10 UK tax years. He or she will continue to be a qualifying new resident for any of the next three tax years for which he or she remains UK resident, as individuals can be qualifying new residents for up to four UK tax years. Any individual who is a member of the House of Commons or the House of Lords for any part of a UK tax year is disqualified from being a qualifying individual for that tax year.

This is defined at Section 845B in Chapter 5 of Part 8 of ITTOIA 2005.

UK residence is determined by reference to the Statutory Residence Test. For more information, see HMRC manual RFIG20000 and the guidance notes at RDR3.

For guidance on Sections 337 to 340A, see EIM31800.
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