SCHEDULES
SCHEDULE 3Calculation of income
PART 4Residual income
CHAPTER 2Residual income of persons other than an eligible student
Treatment of income not treated as income for income tax purposes18
1
Sub-paragraph (3) applies where P is in receipt of any income which, for any of the reasons set out in sub-paragraph (2), does not form part of P's income for the purposes of the Income Tax Acts or the income tax legislation of F1a member State.
2
The reasons are— Reason 1
a
P is not resident or domiciled in the United Kingdom, or
b
P's income is computed for the purposes of the income tax legislation of F1a member State and P is not resident or domiciled in that member State.
Reason 2
a
P's income does not arise in the United Kingdom, or
b
P's income does not arise in the member State in which P's income is computed for the purposes of that State's income tax legislation.
Reason 3 The income arises from an office, service or employment, income from which is exempt from tax.
3
P's taxable income is to be taken to include the income described in sub-paragraph (1) as if it were part of P's income for the purposes of the Income Tax Acts or the income tax legislation of F1a member State, as the case may be.