C1C2Part 2Employment income: charge to tax
Pt. 2 applied (E.W.S.) (31.3.2017) by The Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 (S.I. 2017/353), reg. 1(1), Sch. 1 para. 4(3) (with reg. 2(4)(5))
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 F10employees outside section 26
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
Words in cross-heading substituted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 7(2)(b) (with Sch. 46 para. 26)
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.
F111A
But none of an employee's general earnings from an employment for a tax year are to be “chargeable overseas earnings” if section 24A applies in relation to the employment for the tax year.
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,
F9aa
the employee does not meet the requirement of section 26A for 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
a
in the case of a tax year that is not a split year, the full amount of the overseas earnings for that year, and
b
in the case of a split year, so much of the full amount of the overseas earnings for that year as is attributable to the UK part of the year.
Step 2
Subtract any amounts that would (assuming they were taxable earnings) be allowed to be deducted from F8the earnings identified under step 1 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.
F64
Any attribution required for the purposes of step 1 or step 2 in subsection (3) is to be done on a just and reasonable basis.
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)