EIM40001 - The scope of the charge to tax on general earnings: introduction

Part 2 Chapters 4 and 5 ITEPA 2003

It is not sufficient merely to establish that an individual holds an office or employment in order to be able to tax the income from it. The income tax law in any country has to define the scope of the charge it creates. Chapters 4 and 5 of Part 2 ITEPA 2003 set out how to determine the amount of general earnings from an employment that are taxable earnings. These chapters refer to the following factors.

Residence status of the individual; whether the employee or office holder is:

• resident and/or
• ordinarily resident
• not resident and/or
• not ordinarily resident

in the United Kingdom (see EIM42802).

Location of duties; whether the duties are performed:

• in the United Kingdom, or
• overseas (see EIM40202 to EIM40209).

In addition, when considering employment with a foreign employer (see EIM40031) it is necessary to identify the domicile status of the individual (see EIM42804 and IM1630).

In certain circumstances income arising from overseas duties may only be charged in the United Kingdom if it is remitted here, see EIM40302.