EIM35040 - Travelling expenses: Non-resident and qualifying new resident employees working in the United Kingdom: meaning of a country outside the United Kingdom in which the employee normally lives

Sections 373 to 375 ITEPA 2003

The phrase:

"a country outside the United Kingdom in which the employee normally lives at the time the jorney is made"

may not be easy to apply in some cases. In order to satisfy the condition, it is not necessary for the employee to maintain a residence in that country.

Example

A Canadian citizen who has lived in Canada for most of his life should be regarded, for the whole of the five-year period (see EIM35060), as living there normally. This will apply even if his family relocates to the United Kingdom and sets up home here. 

Alasdair is a Canadian citizen and lives with his wife and family in Toronto. In January 2025 he is sent by his employer to complete a 10-month secondment in Los Angeles (LA). Alasdair rents an apartment in LA but his wife and children do not join him. Alasdair is only able to return to Toronto once during his secondment. In November 2025, having been successful on the secondment, Alasdair is offered a 3-year contract in London starting immediately. Alasdair moves directly from LA to London whilst his family remains in Toronto. Despite the fact that Alasdair's last residence was in LA he still considers his house in Toronto to be his home and so this will continue to be the place where he normally lives. Canada will therefore continue to meet the condition of being "a country outside the United Kingdom in which the employee normally lives" for the purposes of s.373 and s.374.

In April 2026 Alasdair's wife and children relocate to London as they want the family to be together. Even though they sell their family home in Toronto, Alasdair's parents-in-law remain in Toronto and the family do intend to return to Toronto after the end of Alasdair's contract. Canada will therefore continue to meet the condition of being "a country outside the United Kingdom in which the employee normally lives" for the purposes of s.373 and s.374 even though Alasdair does not own a property in the country.

In November 2028, Alasdair's contract in London ends and he is offered a 1-year contract to work in Singapore. As Alasdair and his family have never lived in Singapore, this cannot qualify as "a country outside the United Kingdom in which the employee normally lives" for the purposes of s.373 and s.374. If Alasdair returns to Toronto to live with his parents-in-law prior to his secondment, Canada will continue to meet the condition of being "a country outside the United Kingdom in which the employee normally lives" for the purposes of s.373 and s.374.Â