Part 2Employment income: charge to tax
Chapter 5Taxable earnings: remittance basis rules and rules for non-uk resident employees
F1Remittance basis rules: employees F2who meet section 26A requirement
F325UK-based earnings for year when employee resident, but not ordinarily resident, in UK
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26Foreign earnings for year when F4remittance basis applies and employee F5meets section 26A requirement
(1)
This section applies to general earnings for a tax year F6where section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the employee for that year and the employee F7meets the requirement of section 26A for that year, F8if the general earnings meet all of the following conditions—
(a)
they are neither—
(i)
general earnings in respect of duties performed in the United Kingdom, nor
(ii)
general earnings from overseas Crown employment subject to United Kingdom tax, and
(b)
if the tax year is a split year as respects the employee, they are attributable to the UK part of the year.
(2)
The full amount of any general earnings within subsection (1) which are remitted to the United Kingdom in a tax year is an amount of “taxable earnings” from the employment in that year.
F9(3)
Subsection (2) applies whether or not the employment is held when the earnings are remitted.
(4)
Section 28 explains what is meant by “general earnings from overseas Crown employment subject to United Kingdom tax”.
F10(5)
See Chapter A1 of Part 14 of ITA 2007 for the meaning of “remitted to the United Kingdom” etc.
F11(5A)
Any attribution required for the purposes of subsection (1)(b) is to be done on a just and reasonable basis.
F12(6)
Section 15(1) does not apply to general earnings within subsection (1).
F1326ASection 26: requirement for 3-year period of non-residence
(1)
An employee meets the requirement of this section for a tax year if the employee was—
(a)
non-UK resident for the previous 3 tax years, or
(b)
UK resident for the previous tax year but non-UK resident for the 3 tax years before that, or
(c)
UK resident for the previous 2 tax years but non-UK resident for the 3 tax years before that, or
(d)
non-UK resident for the previous tax year, UK resident for the tax year before that and non-UK resident for the 3 tax years before that.
(2)
The residence status of the employee before the 3 years of non-UK residence is not relevant for these purposes.