Income Tax (Earnings and Pensions) Act 2003 section 273

Conditions applicable to change of residence

Section 273 sets out the three conditions (A, B and C) that must be met in relation to a change of residence for the removal benefits and expenses exemption to apply.

• Condition A: the move must result from starting a new job, a change in duties, or a change in the place where duties are normally performed.
• Condition B: the move must be made wholly or mainly so the employee can live within a reasonable daily commuting distance of their normal workplace after the employment change.
• Condition C: the employee's previous home must not already have been within a reasonable daily commuting distance of that workplace.
• All three conditions must be satisfied for the exemption from tax on removal benefits and expenses to apply.