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HMRC internal manual

Employment Income Manual

Employee resident, ordinarily resident or domiciled outside the United Kingdom: UK-based earnings: location of duties performed on a vessel or aircraft

Section 40 ITEPA 2003It is a question of fact whether employment duties carried out on land are inside or outside of the United Kingdom. However, establishing the location of duties performed on a vessel or aircraft may be more problematic. In order to deal with this difficulty, statutory rules deem certain duties to be carried out inside the United Kingdom no matter where in geographical terms the duties are performed. The rules in Section 40 apply for the purposes of Part 2 Chapter 5. Their main practical application is in determining the UK-based earnings of employees who are resident but not ordinarily resident (Section 15) or not resident (Section 27) in the United Kingdom. See

EIM40201for more information about UK-based earnings. Different rules apply depending upon the residence status (see EIM42810) of the employee.

Any employee irrespective of residenceDuties performed by any person on a vessel on a voyage that does not extend to a port outside the United Kingdom are to be treated as performed in the United Kingdom. (See example


Employees resident in the United KingdomTreat duties performed by a resident of the United Kingdom on a vessel or aircraft engaged on certain voyages and flights as performed in the United Kingdom. Those voyages and flights are:

  • voyages and flights that either begin or end in the United Kingdom, or
  • any part of a voyage or flight that either begins or ends in the United Kingdom.See example


Different rules for the Seafarers’ Earnings Deduction in Part 5 Chapter 6Note that different rules apply for the purposes of the seafarers’ deduction (see


Different rules for calculating limit on chargeable overseas earnings where duties of associated employment performed in the UKSection 40(3) applies a different rule to resident and ordinarily resident seafarers who are not domiciled in the United Kingdom and who perform their employment duties on ships. This rule only operates for the purpose of determining the limit on chargeable overseas earnings imposed by Section 24 where the duties of an associated employment are performed in the United Kingdom.

For this purpose only: treat as performed outside the United Kingdom, any duties performed on a ship engaged on:

  • a voyage beginning or ending outside the United Kingdom or
  • on a part of a voyage that begins or ends outside the United Kingdom.For further information see:
EIM40102 Calculation of chargeable overseas earnings
EIM40103 The Section 24 limit
EIM33101 Meaning of ‘seafarer’ and ‘ship’.