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

Foreign employment relief ignored for purposes of determining adjusted net income

Section 41T ensures that foreign employment relief claimed by qualifying new residents is disregarded when calculating adjusted net income for a tax year.

• This section applies where an individual has claimed foreign employment relief under section 41P for a tax year.
• Adjusted net income (as defined in ITA 2007) must be calculated as if the foreign employment relief had never been deducted.
• The effect is to keep adjusted net income at a higher level, which may reduce or eliminate entitlements that depend on adjusted net income thresholds.
• This prevents individuals from gaining a double benefit — both the foreign employment relief itself and enhanced allowances or thresholds that flow from a lower adjusted net income figure.