BIM14085 - Schedule D: Case II professions and vocations

Case II extends to the annual profits or gains arising from any profession or vocation which is either-

• carried on in the UK by any person whether resident here or elsewhere, or
• carried on partly abroad by a UK resident.

If the profession or vocation is carried on in the UK by a non-resident the Case II charge is limited to the profits or gains from carrying on the profession or vocation within the UK. In other words, the profits derived by the non-resident from carrying on the profession or vocation outside the UK are not chargeable.

If a resident of the UK carries on a profession or vocation wholly abroad he or she is not within Case II in respect of those activities but is liable under Case V on income from a foreign possession.

The treatment of profits earned by non-residents from carrying on professions or vocation within the UK is dealt with in more detail in INTM260000 onwards.