EIM42370 - Employment income: basis of
assessment for general earnings: foreign earnings taxed at time of
receipt in United Kingdom
Sections 22(2) and 26(2) ITEPA 2003
Some foreign earnings are not subject to the normal receipts
basis rules in
EIM42260 onwards. Instead, tax is
charged on the full amount
received in the United Kingdom in the year ofassessment. This is so:
- whether the earnings are for that year or
for some other year of assessment and
- whether or not the office or employment is
held at the time the earnings are received in the United
Kingdom.
Where this rule applies, there is no tax charge on earnings
received overseas - only when there is a remittance to the United
Kingdom (see example
EIM42371).
As regards:
- what earnings fall within this rule, see
EIM42210 and
EIM40301
- the meaning of received in the United
Kingdom, see
EIM40302.
