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Temporary assignments

HMRC does not treat an employee on a temporary foreign assignment or assigned to work temporarily in the UK without changing their main residence as relocating to the place where they normally work. This fits in with the ITEPA 2003, s 339 (see E4.314) concept that a workplace attended for 24 months or less is temporary. Therefore, relief for relocation costs on a temporary assignment may be given under ITEPA 2003, s 338 (see E4.717A) rather than ITEPA 2003, s 271 (see E4.733A) (the £8,000 relocation expenses limit may make ITEPA 2003, s 338 claim preferable in any case).

HMRC, however, accepted that, in the case of qualifying international moves, relief under the specific travel costs legislation can be claimed in addition to the exemption for relocation costs¹.

A claim in respect of ITEPA 2003, s 271 relocation costs cannot apply to ITEPA 2003, ss 22 and 26 remittance basis earnings² (see E4.733A, E4.1303), but a claim under the corresponding payments rules of ITEPA 2003, s 355 (see E4.705A) may be made by a non-domiciled