PAYE81516 - PAYE operation: international employments: qualifying new residents

Section 690D ITEPA 2003

Subject to certain transitional provisions (see Employment Income Manual (EIM) EIM43605), an employee is a qualifying new resident for a tax year if

  • they are UK resident for that tax year,
  • they have been non-UK resident for a continuous period of at least 10 tax years immediately prior to that tax year, and
  • they are not disqualified for that tax year.

A disqualified individual is an individual who would be regarded as a member of the House of Commons or House of Lords for any part of the tax year.

An employee who is a qualifying new resident for a tax year will continue to be a qualifying new resident for any tax year during the following 3 year period for which they are UK resident. This means they can be a qualifying new resident for up to 4 tax years (see EIM43560).