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Earnings charged on remittance basis

Deductions under the general rule (ITEPA 2003, s 336 — see E4.707A) and the main travel rules (ITEPA 2003, ss 337–342 — see E4.714–E4.719) are confined to earnings charged on a receipts basis¹. However, certain expenses (see below) are deductible from earnings charged on a remittance basis provided they would have been deductible under the general rule or main travel rules had the earnings been chargeable on receipt in the tax year in which the expenses were incurred². For this purposes earnings are charged on the remittance basis if they fall under ITEPA 2003, s 22 (chargeable overseas earnings for year when remittance basis applies and employee outside section 26 — see E4.109A) or ITEPA 2003, s 26 (foreign earnings for year when remittance basis applies and employee meets section 26A requirement — see E4.109).

Eligible expenses are: