Part 2Employment income: charge to tax
Chapter 5Taxable earnings: rules applying to employee resident, ordinarily resident or domiciled outside UK
Place of performance of duties of employment
38Earnings for period of absence from employment
1
This section applies if a person ordinarily performs the whole or part of the duties of an employment in the United Kingdom.
2
General earnings for a period of absence from the employment are to be treated for the purposes of this Chapter as general earnings for duties performed in the United Kingdom except in so far as they would, but for that absence, have been general earnings for duties performed outside the United Kingdom.
39Duties in UK merely incidental to duties outside UK
1
This section applies if in a tax year an employment is in substance one whose duties fall to be performed outside the United Kingdom.
2
Duties of the employment performed in the United Kingdom whose performance is merely incidental to the performance of duties outside the United Kingdom are to be treated for the purposes of this Chapter as performed outside the United Kingdom.
3
This section does not affect any question as to—
a
where any duties are performed, or
b
whether a person is absent from the United Kingdom,
for the purposes of section 378 (deduction from seafarers' earnings: eligibility), and section 383 (place of performance of incidental duties) applies instead.
40Duties on board vessel or aircraft
1
Duties which a person performs on a vessel engaged on a voyage not extending to a port outside the United Kingdom are to be treated for the purposes of this Chapter as performed in the United Kingdom.
2
Duties which a person resident in the United Kingdom performs on a vessel or aircraft engaged—
a
on a voyage or journey beginning or ending in the United Kingdom, or
b
on a part beginning or ending in the United Kingdom of any other voyage or journey,
are to be treated as performed in the United Kingdom for the purposes of this Chapter.
3
Subsection (2) does not, however, apply for the purposes of section 24(1)(b) (limit on chargeable overseas earnings under section 23 where duties of associated employment performed in UK) in relation to any duties of a person’s employment if—
a
the employment is as a seafarer, and
b
the duties are performed on a ship.
4
Instead, any duties of the employment which are performed on a ship engaged—
a
on a voyage beginning or ending outside the United Kingdom (but excluding any part of it beginning and ending there), or
b
on a part beginning or ending outside the United Kingdom of any other voyage,
are to be treated as performed outside the United Kingdom for the purposes of section 24(1)(b).
5
For the purposes of subsections (3) and (4)—
a
employment “as a seafarer” means an employment consisting of the performance of duties on a ship or of such duties and others incidental to them;
b
“ship” does not include—
i
any offshore installation within the meaning of the Mineral Workings (Offshore Installations) Act 1971 (c. 61), or
ii
what would be such an installation if the references in that Act to controlled waters were to any waters;
c
the areas designated under section 1(7) of the Continental Shelf Act 1964 (c. 29) are treated as part of the United Kingdom.
41Employment in UK sector of continental shelf
1
General earnings in respect of duties performed in the UK sector of the continental shelf in connection with exploration or exploitation activities are to be treated for the purposes of this Chapter as general earnings in respect of duties performed in the United Kingdom.
2
In this section—
“the UK sector of the continental shelf” means the areas designated under section 1(7) of the Continental Shelf Act 1964, and
“exploration or exploitation activities” means activities carried on in connection with the exploration or exploitation of so much of the seabed and subsoil and their natural resources as is situated in the United Kingdom or the UK sector of the continental shelf.