EIM40003 - General earnings: diagram showing the charging provisions
Chapters 4 and 5 of Part 2 ITEPA 2003
The provisions under which general earnings fall to be charged are shown in the following table.
| United Kingdom residence status of employee | Duties of employment performed either wholly or partly in the United Kingdom | Duties of employment performed wholly outside the United Kingdom | |
| Performed in the United Kingdom | Performed outside the United Kingdom | ||
| Resident, ordinarily resident and domiciled | Section 15 (See Note 1) | Section 15 (See Note 1) | Section 15 (See Note 1) |
| Resident, ordinarily resident but not domiciled | Section 21 (See Note 1) | Section 21 (See Note 1) | Section 21 (See Note 1)
or Section 22 (See Note 2) |
| Resident but not ordinarily resident | Section 25 | Section 26 | Section 26 |
| Not resident but ordinarily resident | Section 27 | No liability | No liability |
| Not resident and not ordinarily resident | Section 27 | No liability | No liability |
Note 1
See EIM33000 and subsequent for information on the Seafarers’ Earnings Deduction.
Note 2
See EIM40102 for the circumstances in which Section 22 applies.
Summary of the charging provisions
Sections 15 and 21: charge all general earnings
irrespective of where the duties of the employment are performed.
The charge is on the full amount of Section 15 or Section 21
earnings received in the tax year. See
EIM40101.
Sections 25 and 27: charge all "UK-based"
earnings, that is general earnings in respect of duties performed
in the United Kingdom. The charge is on the full amount of Section
25 or Section 27 earnings received in the tax year. See
EIM40201.
Section 22: charges "chargeable overseas earnings"
but only to the extent that those earnings are remitted to the
United Kingdom. See
EIM40102.
Section 26: charges foreign earnings but only to
the extent that those earnings are remitted to the United Kingdom.
See
EIM40301.
