Where the special rules in
EIM40005 apply general earnings will be
taxable when received if the charging provisions in Sections 15 or
27 apply (or Sections 21 and 25 before 6 April 2008) in the last or
first year the taxpayer held the job. The same is true if the
taxpayer left the job at the time of going abroad.
Extra-Statutory Concession A11 (ESC A11) (see
EIM42850), which provides split year
treatment, cannot be used to take out of charge earnings which in
substance relate to service in the United Kingdom. The same
principle applies where the taxpayer takes up a new job on becoming
resident in the United Kingdom.
In some cases however the taxpayer may leave the job after
ceasing to be resident in the United Kingdom. Equally the job might
start before the taxpayer arrives in this country. In these
circumstances it may be reasonable to split the post-cessation or
pre-commencement payment between the part of the year when the
taxpayer falls within the relevant charging provision and the rest
of the year. But this split should not necessarily be made on a
time basis. For example, the post-cessation receipt may be
primarily attributable to the taxpayer's service in the United
Kingdom. If it is, a split that reflects the facts should be
agreed.
If the taxpayer is unable to agree, the alternative is that
the earnings are taxable on the strict statutory basis, that is,
without the benefit of ESC A11. The entire sum will be taxable
under Section 15 (or Section 21 before 6 April 2008) because the
taxpayer is resident and ordinarily resident for the whole tax
year.
See example
EIM40007 for illustrations of Sections
17 and 30.
