SE40206 - Schedule E Cases I and II: location of duties performed on a vessel or aircraft

Section 132(4)(b) ICTA 1988

It is a question of fact whether employment duties carried out on land are inside or outside of the United Kingdom. However, establishing the location of duties performed on a vessel or aircraft may be more problematic. In order to deal with this difficulty, statutory rules deem certain duties to be carried out inside the United Kingdom no matter where in geographical terms the duties are performed. The rules apply for the purposes of Cases I and II of Schedule E.

Different rules apply depending upon the residence status (see SE42810) of the employee.

Any employee irrespective of residence

Duties performed by any person on a vessel on a voyage that does not extend to a port outside the United Kingdom are to be treated as performed in the United Kingdom. (See example SE40207)

Employees resident in the United Kingdom

Treat duties performed by a resident of the United Kingdom on a vessel or aircraft engaged on certain voyages and flights as performed in the United Kingdom. Those voyages and flights are:

• Voyages and flights that either begin or end in the United Kingdom, or
• Any part of a voyage or flight that either begins or ends in the United Kingdom.

(See example SE40207)

Different Rules for the Foreign Earnings Deduction

Note that different rules apply for the purposes of the Foreign Earnings Deduction (see SE33033).