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See EIM35050听for background information on Section 374 ITEPA 2003 and the 60 days rule.

The 60 days rule must be satisfied for each journey made by the employee's family. For the purposes of Section 374 only, HMRC will accept that employees will satisfy the rule where:

• they spend at least two thirds of their working days in the United Kingdom over a period of at least 60 days and
• they are present in the United Kingdom for the purpose of performing the duties of their employment both at the start and at the end of this period.

Example 1A

Teresa was sent to the United Kingdom to work for 12 months as a project manager based at the European headquarters of a multi-national corporation. Her family accompanied her at the start of her assignment. During the first 60 days of her assignment, she spent 20 days working at her office in the United Kingdom and 10 days working outside the United Kingdom. The other 30 days were spent in the UK but were non-working days. Provided the other conditions are satisfied, she will be entitled to a deduction under Section 374 for the travelling expenses of her family. This is because she spent:

• two thirds or more of her working days in the United Kingdom during a period of at least 60 days and
• she was present in the United Kingdom for the purpose of performing the duties of her employment both at the start and at the end of that period.

Example 1B

The facts are the same as in example 1A except that during the first 60 days of her assignment, Teresa spent 10 days working at her office in the United Kingdom and 20 days working outside the United Kingdom.

She does not satisfy the 60 days rule at the 60 day point. However, if she spent her next 30 working days in the United Kingdom, she would then become entitled to a deduction for the travelling expenses of her family. This is because she would have spent:

• two thirds or more of her working days in the United Kingdom during a period of at least 60 days and
• she was present in the United Kingdom for the purpose of performing the duties of her employment both at the start and at the end of that period.

Example 2A

James is sent by his US employer to work in the UK on 1 July 2025. James was non-UK resident in all years prior to 2025-26 and meets the conditions to be a qualifying new resident. James returned to the US between 1 to 15 August 2025 and 1 to 10 October 2025 for work purposes. On 20 December 2025 to 4 January 2026 James undertook no work. He has no other visits to the US in the 2025-26 tax year. James's employer reimburses him for all these trips. 80% of James's working days are performing duties in the UK.

James's civil partner visits him for two weeks from 15 August and 2 weeks from 10 October, travelling to the UK with James on both occasions. James meets the 60 days rule as well as the other conditions allowing a deduction for his partner's travel.

Example 2B

Continuing from example 2A, James leaves the UK between June 2026 and June 2027 to return to the US for work. He is non-resident for the 2026-27 tax year. When he returns to the UK in June 2027, he remains a qualifying new resident as it is one of the three such years following the first year as a qualifying new resident.

James and his civil partner arrive in the UK from the US on 1 June 2027 with his employer reimbursing James for the cost of travel. James's partner returns to the US on 15 June 2027. James works in the UK for 20 days to 1 July 2027 before returning to the US for 6 weeks before coming back to the UK on 14 August 2027 where he stayed for the rest of the year.

James's employer reimbursed him for all the travel expenses he incurred between 1 June 2027 and 14 August 2027. A deduction is allowed under s.373 for his travel costs. However, James does not work two thirds of his first 60 continuous days in the UK and therefore a deduction would not be allowed under s.374 for the travel expenses incurred for his partner to travel.

Example 3

Stephen was sent to the United Kingdom to work for the United Kingdom subsidiary of a US finance house in January 2025. He was required to travel extensively outside the United Kingdom on business.

Stephen's employer paid the travelling expenses of his family who arrived in the United Kingdom to visit him for two weeks on 1 July 2025. At that time, he had just returned from a five-day business trip to the Far East on 30 June and was later recalled to the US on business for three days arriving back in the United Kingdom on 29 July. Between 1 June and 30 July, he worked on 30 days, of which 21 were spent working in the United Kingdom.

Provided the other conditions are satisfied, Stephen will be entitled to a deduction inder Section 374 because his family visited him during a period of at least 60 days when two thirds or more of his working days were days spent working in the United Kingdom.

Example 4

Jules was sent by her French employer to work in the United Kingdom to oversee the installation and testing of a new computer system at its subsidiary. Jules arrived in the United Kingdom on 1 May 2025. She completed her assignment on 15 June having spent 24 out of 33 working days in the United Kingdom. She then remained in the United Kingdom to visit friends and finally left on 10 July.

Jules's employer paid the travelling expenses of her husband who arrived in the United Kingdom to visit her on 10 June.

Jules would not be entitled to a deduction under Section 374 for her husband's travelling expenses. The period when she was in the United Kingdom for the purpose of performing her duties was only 46 days (1 May 2025 to 15 June 2025) so the 60 days rule cannot be satisfied.
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