Paragraph 38

Section 413 (exception in certain cases of foreign service) is amended as follows.

In subsection (2), after “subsection” (in the second place it occurs) insert “ (2A), ”.

After that subsection insert—

“(2A)

This subsection applies to service in or after the tax year 2013-14—

(a)

to the extent that it consists of duties performed outside the United Kingdom in respect of which earnings would not be relevant earnings, or

(b)

if a deduction equal to the whole amount of the earnings from the employment was or would have been allowable under Chapter 6 of Part 5 (deductions from seafarers' earnings).”

In subsection (3), after “2003-04” insert “ but before the tax year 2013-14 ”.

After that subsection insert—

“(3ZA)

In subsection (2A)(a) “relevant earnings” means earnings for a tax year that are earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.”