Income Tax (Earnings and Pensions) Act 2003 section 41Z1

Limit on qualifying foreign employment income from associated employments

Section 41Z1 limits how much employment income from associated employments (jobs with the same or connected employers) can qualify as foreign employment income when some duties are performed in the UK.

• This section applies where an individual holds associated employments generating qualifying employment income and the duties are not performed entirely outside the UK.
• There is a cap on how much of the qualifying employment income from those associated employments can be treated as qualifying foreign employment income.
• The cap is set at a reasonable proportion, determined by considering the nature of and time spent on duties performed outside versus inside the UK, along with all other relevant circumstances.
• Associated employments means employments with the same employer or with employers who are associated with each other.

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