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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Deductions from earnings: capital allowances: procedures: UK based earnings and earnings charged on remittance

Section 20(2) and (3) CAA 2001

UK based earningsCertain employees are only taxed on their UK based earnings, see

EIM40003. Such employees are entitled to capital allowances for plant and machinery that satisfies the conditions in EIM36520, but only to the extent that it is used in the performance of their UK duties. Use in the performance of duties outside the UK is treated as non-business use for the purpose of the apportionment in EIM36570.
### Earnings charged on remittanceNo deduction for capital allowances can be given from earnings chargeable on remittance.

For guidance on the way that the deduction rules in Part 5 ITEPA 2003 apply to employees chargeable only on UK based earnings or on remittance, see EIM31750 onwards.