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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Meaning of resident in the United Kingdom

Part 2 Chapters 4 and 5 ITEPA 2003

Guidance on the meaning of resident in the United Kingdom can be found in:

  • the Residence, Domicile and Remittance Basis Manual (RDRM) for individuals
  • CT3365 onwards for companies.

The existence in the United Kingdom of a branch or agency of an overseas concern does not of itself make the overseas concern resident in the United Kingdom even if the profits of the branch or agency are chargeable to United Kingdom tax. Therefore employees who:

  • are employees of a concern resident outside and not resident in the United Kingdom and
  • are sent to work at a United Kingdom branch of that concern

will be employed by a foreign employer (see EIM40031).

Similarly, employees of an overseas government who work at an embassy or High Commissioner’s office, etc. in the United Kingdom will be employed by a foreign employer.

  • See RE2250 onwards concerning diplomatic privilege.
  • See INTM153210 concerning the exemption under a double taxation agreement of governmental remuneration.