Income Tax (Earnings and Pensions) Act 2003 section 41S

Effect of claim on relief for contributions to registered pension schemes

Section 41S explains how a foreign employment relief claim reduces the amount of UK earnings that can be used to calculate tax relief on contributions to a registered pension scheme.

• Applies to individuals who are active members of a registered pension scheme and make a foreign employment relief claim for a tax year.
• The amount of relevant UK earnings eligible for pension contribution tax relief is reduced by the amount of foreign employment relief claimed.
• The reduction — called the "relieved amount" — equals the relief obtained under section 41P(2) as a result of the foreign employment relief claim.
• This prevents individuals from receiving a double tax benefit by claiming both foreign employment relief and full pension contribution relief on the same earnings.