Part 2 Chapter 5 ITEPA 2003

Section 23

Section 23 sets out three steps to calculate how much of an employee's general earnings are chargeable overseas earnings.

Step 1: identify the full amount of overseas earnings for the tax year.

Overseas earnings are defined in section 23 as the general earnings for a tax year in which:

the employee is resident but not domiciled in the United Kingdom and remittance basis applies

the taxpayer does not meet the conditions in section 26A (see EIM40102)

the employment is with a ‘foreign employer’ (see EIM40031), and

the duties of the employment are performed wholly outside the United Kingdom.

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