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, other than chargeable overseas earnings, for any tax year in which
• the person holding the office or employment is resident and ordinarily resident in the United Kingdom
• whether they are domiciled in the United Kingdom or elsewhere.

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.

Changes from 6 April 2008

Before 6 April 2008, general earnings, other than chargeable overseas earnings, for a tax year in which a person was resident and ordinarily resident, but not domiciled, in the United Kingdom were taxable under Section 21 ITEPA.

Section 21 was withdrawn with effect from 6 April 2008.

Since 6 April 2008 an employee or office holder who is resident and ordinarily resident but not domiciled in the UK, who was previously taxable under Section 21, is taxable under Section 15, other than for chargeable overseas earnings. Guidance on "chargeable overseas earnings" can be found at EIM40102 onwards.