EIM40101 - Taxable earnings: employee resident and ordinarily resident in the United Kingdom

Part 2 Chapter 4 ITEPA 2003

Section 15

Section 15 applies to:

• the general earnings for any tax year in which
• the person holding the office or employment is resident, ordinarily resident and domiciled in the United Kingdom.

There is no reference to where the duties of the employment are performed. The majority of employees in the United Kingdom are chargeable under Section 15.

The full amount of Section 15 earnings received in the tax year comprise taxable earnings whether the earnings are for that year or some other year and whether or not the employment is still held at the time when the earnings are received.

Part 2 Chapter 5 ITEPA 2003

Section 21

Section 21 applies to:

• the general earnings other than "chargeable overseas earnings" for any tax year in which
• the person holding the office or employment is resident, ordinarily resident but notdomiciled in the United Kingdom.

As with Section 15, there is no reference to where the duties of the employment are performed. The full amount of Section 21 earnings received in the tax year comprise taxable earnings whether the earnings are for that year or some other year and whether or not the employment is still held at the time when the earnings are received.

Guidance on "chargeable overseas earnings" can be found at EIM40102 onwards.