C1Part 2Employment income: charge to tax
Chapter 5F4Taxable earnings: remittance basis rules and rules for non-uk resident employees
Pt. 2 Ch. 5 title substituted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 10
F5Remittance basis rules for UK ordinarily resident employees
S. 21 cross-heading substituted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 12
23Calculation of “chargeable overseas earnings”
1
This section applies for calculating how much of an employee’s general earnings for a tax year are “chargeable overseas earnings” for the purposes of F2section 22.
2
General earnings for a tax year are “overseas earnings” for that year if—
F3a
section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the employee for that year,
aa
the employee is ordinarily UK resident in that year,
b
the employment is with a foreign employer, and
c
the duties of the employment are performed wholly outside the United Kingdom.
3
To calculate the amount of “chargeable overseas earnings” for a tax year—
Step 1
Identify the full amount of the overseas earnings for that year under subsection (2).
Step 2
Subtract any amounts that would (assuming they were taxable earnings) be allowed to be deducted from those earnings under—
a
section 232 or Part 5 (deductions allowed from earnings),
F1b
sections 188 to 194 of FA 2004 (contributions to registered pension schemes), or
d
section 262 of CAA 2001 (capital allowances to be given effect by treating them as deductions from earnings).
Step 3
Apply any limit imposed by section 24 (limit where duties of associated employment performed in UK).
The result is the chargeable overseas earnings for the tax year.
Pt. 2 applied (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 969(4)(a), 1329(1) (with Sch. 2 Pts. 1, 2)