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

Qualifying foreign third party income

Section 41V defines what counts as "qualifying foreign third party income" — income provided through third parties that relates to duties performed outside the UK — for the purposes of the foreign income rules in this Chapter.

• Third party income is any amount that counts as employment income under the rules on employment income provided through third parties (Part 7A, Chapter 2)
• Such income only qualifies if the employment duties are performed wholly or partly outside the UK during the relevant qualifying year, and the value of the relevant step is attributable to the UK part of that year (where the year is a split year)
• Qualifying third party income becomes "qualifying foreign third party income" to the extent it relates to duties performed outside the United Kingdom
• Both the split-year attribution and the allocation between UK and non-UK duties must be carried out on a just and reasonable basis