Income and Corporation Taxes Act 1988

19 Schedule E. U.K.

(1) M1 The Schedule referred to as Schedule E is as follows:—

SCHEDULE E

1. Tax under this Schedule shall be charged in respect of any office or employment on emoluments therefrom which fall under one or more than one of the following Cases—

[F1 Case I:	any emoluments for any year of assessment in which the person holding the office or employment is resident and ordinarily resident in the United Kingdom, subject however to section 192 if the emoluments are foreign emoluments (within the meaning of that section )F2 . . . ;
Case II:	any emoluments, in respect of duties performed in the United Kingdom, for any year of assessment in which the person holding the office or employment is not resident (or, if resident, not ordinarily resident) in the United Kingdom, subject however to section 192 if the emoluments are foreign emoluments (within the meaning of that section);
Case III:	any emoluments for any year of assessment in which the person holding the office or employment is resident in the United Kingdom (whether or not ordinarily resident there) so far as the emoluments are received in the United Kingdom;]

and tax shall not be chargeable in respect of emoluments of an office or employment under any other paragraph of this Schedule.

2. Tax under this Schedule shall be charged in respect of every annuity, pension or stipend payable by the Crown or out of the public revenue of the United Kingdom or of Northern Ireland, other than annuities charged [F3 under paragraph (c) of Case III of Schedule D].

3. Tax under this Schedule shall also be charged in respect of any pension which is paid otherwise than by or on behalf of a person outside the United Kingdom.

4. Where—

(a) any pension or annuity is payable in the United Kingdom by or through any public department, officer or agent of a government of a territory to which this paragraph applies (but otherwise than out of the public revenue of the United Kingdom or of Northern Ireland) to a person who has been employed in relevant service outside the United Kingdom in respect of that service, or

(b) any pension or annuity is so payable to the widow, child, relative or dependant of any such person as is mentioned above,

and the person in receipt of the pension or annuity is chargeable to tax as a person resident in the United Kingdom, the pension or annuity shall be chargeable to tax under this Schedule.

The territories to which this paragraph applies are—

(i)

any country forming part of Her Majesty’s dominions,

(ii)

any other country for the time being mentioned in Schedule 3 to the M2 British Nationality Act 1981, and

(iii)

any territory under Her Majesty’s protection;

and in this paragraph “relevant service” means the service of the Crown or service under the government of a territory to which this paragraph applies.

[F4 4A. Where (apart from this paragraph) emoluments from an office or employment would be for a year of assessment in which a person does not hold the office or employment, the following rules shall apply for the purposes of the Cases set out in paragraph 1 above—

(a) if in the year concerned the office or employment has never been held, the emoluments shall be treated as emoluments for the first year of assessment in which the office or employment is held;

(b) if in the year concerned the office or employment is no longer held, the emoluments shall be treated as emoluments for the last year of assessment in which the office or employment was held.]

5. The preceding provisions of this Schedule are without prejudice to any other provision of the Tax Acts directing tax to be charged under this Schedule and tax so directed to be charged shall be charged accordingly.

(2) References in the Tax Acts to Cases I, II and III of Schedule E shall be taken as referring to the Cases under which tax is chargeable under paragraph 1 of that Schedule.

(3) Part V contains further provisions relating to the charge to tax under Schedule E.

Textual Amendments

F1 1989 s.36(2)for 1989-90or subsequent years of assessment. Previously

“Case I: where the person holding the office or employment is resident and ordinarily resident in the United Kingdom, any emoluments for the chargeable period, subject however to section 192 if the emoluments are foreign emoluments (within the meaning of that section) and to section 193(1) if in the chargeable period he performs the duties of the office or employment wholly or partly outside the United Kingdom and subject also to section 170; Case II: where that person is not resident or, if resident, then not ordinarily resident in the United Kingdom, any emoluments for the chargeable period in respect of duties performed in the United Kingdom, subject however to section 192 if the emoluments are foreign emoluments (within the meaning of that section) and subject also to section 170; Case III: where that person is resident in the United Kingdom (whether or not ordinarily resident there), any emoluments received in the United Kingdom in the chargeable period being emoluments either for that period or for an earlier period in which he has been resident there and any emoluments for that period received in the United Kingdom in an earlier period;”.

F2 S. 19(1): words in Sch. E Case 1 repealed (with effect in accordance with s. 63(5)-(7) and Sch. 27 Pt. 3(11) Note of the repealing Act) by Finance Act 1998 (c. 36), ss. 63(3)(a), 165, Sch. 27 Pt. 3(11), Note

F3 S. 19(1): words in Sch. E para. 2 substituted (with effect as mentioned in Sch. 7 para. 32 of the amending Act) by Finance Act 1996 (c. 8), s. 79, Sch. 7 para. 5 (with Sch. 7 paras. 33-35)

F4 1989 s.36(3)where each of the years mentioned in (a)or (b)as the case may be is 1989-90or a subsequent year of assessment.

Modifications etc. (not altering text)

C1 S. 19: Sch. E extended (for the year 1995-96 and subsequent years of assessment) by Finance Act 1994 (c. 9), s. 139(1) (with s. 139(2))

S. 19: Sch. E excluded (with effect in accordance with s. 230(3) of the excluding Act) by Finance Act 1994 (c. 9), s. 219(2)(b)(4) (with s. 220)

S. 19: Sch. E extended (with effect in accordance with Sch. 12 para. 22 of the extending Act) by Finance Act 2000 (c. 17), s. 60, Sch. 12 para. 2 (with Sch. 12 para. 24)

C2 For exemptions see Index Vol.5.

Marginal Citations

M1 SOURCE-1970 s. 181; 1974 s. 21(1); 1977 s. 31(3)(a)

M2 1981 c. 61.