EIM42370 - Employment income: basis of assessment for general earnings: foreign earnings taxed at time of remittance to the United Kingdom

Sections 22(2) and 26(2) ITEPA 2003

Some foreign earnings are not subject to the normal receipts basis rules in EIM42260 onwards. Instead, these earnings are taxable when remitted to the United Kingdom. This is so:

  • whether the earnings are for the year of assessment in which they are remitted or for some other year of assessment and
  • whether or not the office or employment is held at the time the earnings are remitted to the United Kingdom.

Where these rules apply, the earnings will not be taxable when they are received overseas - only when there is a remittance to the United Kingdom (see example EIM42371).

As regards:

  • what earnings fall within these rules, see EIM42210 and EIM40301
  • the meaning of remitted to the United Kingdom, see EIM40302.