RG5.4 - Liability to UK tax: Scope of liability to income tax on earnings (Schedule E)

	Status of employee	Duties of employment performed wholly or partly in the UK		Duties of employment performed wholly outside the UK
		In the UK	Outside the UK	Duties of employment performed wholly outside the UK
Foreign emoluments 1	Resident and ordinarily resident in the UK	Liable - less possible deduction 2 Case I	Liable - less possible deduction 2 Case I	Liable if received in the UK Case III
	Resident but not ordinarily resident	Liable Case II	Liable if received in the UK Case III	Liable if received in the UK Case III
	Not resident	Liable Case II	Not liable	Not liable
Other earnings	Resident and ordinarily resident	Liable - less possible deduction 2 Case I	Liable - less possible deduction 2 Case I	Liable - less possible deduction 2 Case I
	Resident but not ordinarily resident	Liable Case II	Liable if received in the UK Case III	Liable if received in the UK Case III
	Not resident	Liable Case II	Not liable	Not liable

"Foreign emoluments" is the term used in the Taxes Acts to mean the earnings of someone who is not domiciled in the UK (see Chapter 3) and whose employer is not resident in the UK (nor in the Republic of Ireland). See SE40031.
There may be a deduction of 100% in these cases from the amount chargeable, if the earnings are for a period which is part of a qualifying absence lasting 365 days or more - this means that such earnings for that period will be free from UK tax. Up to 16 March 1998 the deduction could be claimed by all employees but after that date it is only available to seafarers (see SE40106 onwards).