Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 355: Deduction for corresponding payments by non-domiciled employees with foreign employers
1540.This section provides for a non-domiciled employee with a foreign employer to claim a deduction if certain conditions are met.
1541.This section derives from section 192(1) and (3) of ICTA.
1542.Subsections (2) to (5) sets out the conditions that must be met:
	The employee must not be domiciled in the United Kingdom;
	The employment must be with a foreign employer (a term defined in section 721(1));
	The employee must have made a payment out of earnings from the employment; and
	The payment did not reduce the employee’s liability to United Kingdom income tax, but was made in circumstances corresponding to those in which it would do so.
1543.Subsection (6) provides for the deduction to be allowed.
1544.Section 192(3) of ICTA provides for a successful claim to be allowed “as a deduction in computing the amount of the emoluments”; but this section provides for the claim to be allowed “as a deduction under this Chapter”. See Change 93 in Annex 1.