{
  "url": "https://openlegislation.uk/finance-act-2025/schedule-8/paragraph-1",
  "json_url": "https://openlegislation.uk/finance-act-2025/schedule-8/paragraph-1.json",
  "legislation": "ukpga/2025/8",
  "legislation_title": "Finance Act 2025",
  "legislation_url": "https://openlegislation.uk/finance-act-2025",
  "path": "schedule/8/paragraph/1",
  "kind": "paragraph",
  "number": "1",
  "heading": null,
  "text": "(1) ITEPA 2003 is amended as follows.\n(2) In section 28 (meaning of “general earnings from overseas Crown employment subject to UK tax”), in subsection (2)(b), after “or of” insert “Wales, Scotland or”.\n(3) In section 225 (payments for restrictive undertakings), for subsection (6) substitute—\n“(6) This section only applies where—\n(a) if there are general earnings from the employment that are earned in, or otherwise in respect of, the tax year mentioned in subsection (3), subsection (7) applies to any of those general earnings, or\n(b) it is reasonable to assume that, if there were such general earnings, subsection (7) would apply to any of those general earnings.\n(7) This subsection applies to general earnings if either—\n(a) section 15 applies to the general earnings and the general earnings are not—\n(i) qualifying foreign general earnings within the meaning of section 41T (qualifying foreign general earnings), or\n(ii) general earnings to which section 22 or section 26 would apply if the individual made a claim under section 809B of ITA 2007 (claim for the remittance basis) for the tax year mentioned in section 22(1) or 26(1) (being a tax year before tax year 2025-26), or\n(b) section 27 applies to the general earnings.”\n(4) In section 290E (calculation of earnings rate for a tax year), in subsection (4), for “non-domiciled”, in each place it occurs, substitute “non-resident or qualifying new resident”.\n(5) In section 333 (scope of this chapter: expenses paid by the employee), in subsection (3)(b), for “non-domiciled” substitute “qualifying new resident”.\n(6) In section 341 (travel at start or finish of overseas employment), in subsection (4), for the words from “domiciled” to the end substitute “not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”\n(7) In section 342 (travel between employments where duties performed abroad), in subsection (7), for the words from “domiciled” to the end substitute “not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”\n(8) In section 355 (deductions for corresponding payments by non-domiciled employees)—\n(a) in the heading, for “non-domiciled” substitute “qualifying new resident”;\n(b) in subsection (2), for the words from “not domiciled” to the end substitute “a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”\n(9) In section 360 (disallowance of certain accommodation expenses of MPs), in subsection (1), for “non-domiciled” substitute “non-resident or qualifying new resident”.\n(10) In section 370 (travel costs and expenses where duties performed abroad), in subsection (6), for paragraph (b) substitute—\n“(b) either—\n(i) if the tax year is tax year 2024-2025 or an earlier tax year, would be taxable earnings under section 15 even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year, or\n(ii) if the tax year is tax year 2025-2026 or a later tax year and the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, are not qualifying foreign general earnings within the meaning of section 41T (qualifying foreign general earnings).”\n(11) In the italic heading before section 373 for “non-domiciled” substitute “non-resident or qualifying new resident”.\n(12) In section 373 (employee’s travel costs and expenses where duties performed in UK)—\n(a) in the heading, for “Non-domiciled” substitute “Non-resident or qualifying new resident”;\n(b) in subsection (1) for “not domiciled in the United Kingdom” substitute “non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”;\n(c) in subsection (4)(a)—\n(i) for “the country” substitute “a country”;\n(ii) after “normally lives” insert “at the time the journey is made”;\n(d) in subsection (4)(b), for “that”, in both places it occurs, substitute “such a”;\n(e) omit subsection (7).\n(13) In section 374 (spouse’s, civil partner’s or child’s travel costs and expenses where duties performed in UK)—\n(a) in the heading, for “Non-domiciled” substitute “Non-resident or qualifying new resident”;\n(b) in subsection (1) for “not domiciled in the United Kingdom” substitute “non-UK resident or a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”;\n(c) in subsection (3)(a)—\n(i) for “the country” substitute “a country”;\n(ii) after “normally lives” insert “at the time the journey is made”;\n(d) in subsection (5)(c)—\n(i) for “the country” substitute “a country”;\n(ii) after “normally lives” insert “at the time the journey is made”\n(e) omit subsection (10).\n(14) In section 376 (foreign accommodation and subsistence costs and expenses (overseas employments))—\n(a) in subsection (1)(c), for “domiciled in the United Kingdom” substitute “not a qualifying new resident for the purposes of Chapter 5C of Part 2 of this Act or Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)”;\n(b) omit subsection (6).\n(15) In section 395C (meaning of “foreign service” in section 395B), for subsection (4) substitute—\n“(4) In subsection (2) “relevant earnings” means—\n(a) for service in or after the tax year 2025-26, earnings—\n(i) to which section 15 applies, and\n(ii) if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of section 41T (qualifying foreign general earnings), and\n(b) for service before tax year 2025-26, 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.”\n(16) In section 413 (exception in certain cases of foreign service), for subsection (3ZA) substitute—\n“(3ZA) In subsection (2A)(a) “relevant earnings” means—\n(a) for service in or after the tax year 2025-26, earnings—\n(i) to which section 15 applies, and\n(ii) if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of section 41T (qualifying foreign general earnings), and\n(b) for service before tax year 2025-26, 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.”",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2025/8/schedule/8/paragraph/1",
    "retrieved_at": "2026-10-29T08:47:01.939707+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}