The first £8,000 of qualifying relocation expenses associated with an employee required to change their main residence for valid work reasons are exempt from tax. Valid reasons include: -
A qualifying relocation expense has to fit into one of the following broad categories: -.
Anything that does not fit into one the above criteria is a non-qualifying relocation expense and should be entered in Section N.
Employees have until the end of the following tax year in which the relocation commenced to fully utilise the £8,000 exemption. Relocation expenses that would have been qualifying but that were paid late should be entered in Section M.
Finally, the £8,000 exemption is related to each relocation and not to the tax year.