Subject to a specified limit (see below), eligible removal expenses and benefits (see E4.732B)paid to or provided for an employee are not regarded as earnings for the purposes of ITEPA 2003. This does not apply to general earnings assessable on the remittance basis under the provisions described in E4.109 or E4.109A1.
Qualifying expenses are amounts paid to or on behalf of the employee by or on behalf of the employer, so that expenses borne by the employee and not reimbursed do not give rise to relief (see EIM03103). A flat-rate allowance may be paid in limited circumstances (see EIM03139).
Limit on relief
The relief is only available to the extent that the value to an employee of eligible removal expenses paid and eligible removal benefits provided in respect of a particular change of residence does not exceed a specified limit. The limit is set at £8,0002. See Wald3 for a case where a taxpayer was charged a penalty for not including the excess over the £8,000 limit on his tax return. The limit
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