TCTM04217 - Income: employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Crown Employee Foreign Service allowances

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(4) Table 1 (item11B)

Payment of an allowance to a person in employment under the Crown for which no liability to income tax arises by virtue of section 299 of the ITEPA 2003.

Note: With effect from 6 April 2017 the way in which many salary sacrifice and benefit in kind schemes are taxed will change, which means that some tax credit claimants will see an increase in their taxable income.

For the purposes of tax credits, where one of these schemes is in operation the taxable income figure should be used.