Income Tax (Earnings and Pensions) Act 2003 section 390

Exception: non-domiciled employees with foreign employers

Section 390 provides an exception from the tax charge on employer contributions to retirement benefits schemes where the employee is non-UK domiciled and works for a foreign employer.

• This section creates an exception to the general tax charge under section 386 on employer payments to retirement benefits schemes.
• The exception applies where the employee is not domiciled in the United Kingdom and their employer is based overseas (what was previously known as "foreign emoluments").
• The employer's payment must be made to a retirement benefits scheme that corresponds to an approved scheme or a relevant statutory scheme.
• Rather than using the old terminology of "foreign emoluments," the section directly sets out the specific circumstances — non-UK domicile and foreign employer — that must be met for the exception to apply.