SE40003 - The Cases of Schedule E: diagram

Section 19(1)1 ICTA 1988

The three Cases of Schedule E under which emoluments fall to be charged are shown in the following table.

United Kingdom residence status of employeeDuties of employment performed either wholly or partly in the United KingdomDuties of employment performed wholly outside the United Kingdom
Performed in the United KingdomPerformed outside the United Kingdom
Resident and Ordinarily ResidentCase I (See Note 1)Case I (See Note 1)Case I (see Note 1). If the emoluments are foreign emoluments, Case III
Resident but Not Ordinarily ResidentCase IICase IIICase III
Not Resident but Ordinarily ResidentCase IINo liabilityNo liability
Not resident and Not Ordinarily ResidentCase IINo liabilityNo liability

Note 1

See SE33000 and subsequent for information on the Foreign Earnings Deduction. The rules were changed on 17 March 1998. After that date only 'seafarers' are entitled to the Deduction.