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(b) whether or not the employment is held at the time when the earnings | |
are received. | |
(4) Section 28 explains what is meant by “general earnings from overseas Crown | |
employment subject to United Kingdom tax”. | |
Special class of earnings for purposes of sections 25 to 27 | 5 |
28 Meaning of “general earnings from overseas Crown employment subject to | |
UK tax” | |
(1) This section explains for the purposes of sections 25 to 27 what is meant by | |
“general earnings from overseas Crown employment subject to United | |
Kingdom tax”. | 10 |
(2) “Crown employment” means employment under the Crown— | |
(a) which is of a public nature, and | |
(b) the earnings from which are payable out of the public revenue of the | |
United Kingdom or of Northern Ireland. | |
(3) “General earnings from overseas Crown employment” means general earnings | 15 |
from such employment in respect of duties performed outside the United | |
Kingdom. | |
(4) Such earnings are to be taken as being “subject to United Kingdom tax” unless | |
they fall within any exception contained in an order under subsection (5). | |
(5) The Board of Inland Revenue may make an order excepting from the operation | 20 |
of sections 25(2) and 27(2) — | |
(a) general earnings of any description of employee specified in the order; | |
(b) general earnings from any description of employment so specified. | |
(6) The Board may make the order if they consider that such earnings should not | |
be subject to those provisions having regard to the international obligations of | 25 |
Her Majesty’s Government and such other matters as appear to them to be | |
relevant. | |
(7) An order may make provision by reference to all or any of the following— | |
(a) the residence or nationality of the employee; | |
(b) whether the employee was engaged in or outside the United Kingdom; | 30 |
(c) the nature of the post, the rate of remuneration and any other terms and | |
conditions applying to it. | |
(8) Subsection (7) does not affect the generality of the power to make provision by | |
reference to such factors as the Board consider appropriate. | |
Year for which general earnings are earned | 35 |
29 Meaning of earnings “for” a tax year | |
(1) This section applies for determining whether general earnings are general | |
earnings “for” a particular tax year for the purposes of this Chapter. | |
(2) General earnings that are earned in, or otherwise in respect of, a particular | |
period are to be regarded as general earnings for that period. | 40 |
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(3) If that period consists of the whole or part of a single tax year, the earnings are | |
to be regarded as general earnings “for” that tax year. | |
(4) If that period consists of the whole or parts of two or more tax years, the part | |
of the earnings that is to be regarded as general earnings “for” each of those tax | |
years is to be determined on a just and reasonable apportionment. | 5 |
(5) This section does not apply to any amount which is required by a provision of | |
Part 3 to be treated as earnings for a particular tax year. | |
30 Treatment of earnings for year in which employment not held | |
(1) This section applies for the purposes of this Chapter in a case where general | |
earnings from an employment would otherwise fall to be regarded as general | 10 |
earnings for a tax year in which the employee does not hold the employment. | |
(2) If that year falls before the first tax year in which the employment is held, the | |
earnings are to be treated as general earnings for that first tax year. | |
(3) If that year falls after the last tax year in which the employment was held, the | |
earnings are to be treated as general earnings for that last tax year. | 15 |
(4) This section does not apply in connection with determining the year for which | |
amounts are to be treated as earnings under Chapters 2 to 11 of Part 3 (the | |
benefits code). | |
When general earnings are received or remitted | |
31 Receipt of money earnings | 20 |
(1) General earnings consisting of money are to be treated for the purposes of this Chapter | |
as received at the earliest of the following times— | |
Rule 1 | |
The time when payment is made of or on account of the earnings. | |
Rule 2 | 25 |
The time when a person becomes entitled to payment of or on account of the earnings. | |
Rule 3 | |
If the employee is a director of a company and the earnings are from employment with | |
the company (whether or not as director), whichever is the earliest of— | |
(a) the time when sums on account of the earnings are credited in the company’s | 30 |
accounts or records (whether or not there is any restriction on the right to draw | |
the sums); | |
(b) if the amount of the earnings for a period is determined by the end of the period, | |
the time when the period ends; | |
(c) if the amount of the earnings for a period is not determined until after the | 35 |
period has ended, the time when the amount is determined. | |
(2) Rule 3 applies if the employee is a director of the company at any time in the | |
tax year in which the time mentioned falls. | |
(3) In this section “director” means— | |
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(a) in relation to a company whose affairs are managed by a board of | |
directors or similar body, a member of that body, | |
(b) in relation to a company whose affairs are managed by a single director | |
or similar person, that director or person, and | |
(c) in relation to a company whose affairs are managed by the members | 5 |
themselves, a member of the company, | |
and includes any person in accordance with whose directions or instructions | |
the directors of the company (as defined above) are accustomed to act. | |
(4) For the purposes of subsection (3) a person is not to be regarded as a person in | |
accordance with whose directions or instructions the directors of the company | 10 |
are accustomed to act merely because the directors act on advice given by that | |
person in a professional capacity. | |
(5) Where this section applies— | |
(a) to a payment on account of general earnings, or | |
(b) to sums on account of general earnings, | 15 |
it so applies for the purpose of determining the time when an amount of | |
general earnings corresponding to the amount of that payment or those sums | |
is to be treated as received for the purposes of this Chapter. | |
32 Receipt of non-money earnings | |
(1) General earnings not consisting of money are to be treated for the purposes of | 20 |
this Chapter as received at the following times. | |
(2) If an amount is treated as earnings for a particular tax year under any of the | |
following provisions, the earnings are to be treated as received in that year— | |
section 81 (taxable benefits: cash vouchers), | |
section 94 (taxable benefits: credit-tokens), | 25 |
Chapter 5 of Part 3 (taxable benefits: living accommodation), | |
Chapter 6 of Part 3 (taxable benefits: cars, vans and related benefits), | |
Chapter 7 of Part 3 (taxable benefits: loans), | |
Chapter 8 of Part 3 (taxable benefits: notional loans in respect of | |
acquisitions of shares), | 30 |
Chapter 9 of Part 3 (taxable benefits: disposals of shares for more than | |
market value), | |
Chapter 10 of Part 3 (taxable benefits: residual liability to charge), | |
section 222 (payments treated as earnings: payments on account of tax | |
where deduction not possible), | 35 |
section 223 (payments treated as earnings: payments on account of | |
director’s tax). | |
(3) If an amount is treated as earnings under section 87 (taxable benefits: non-cash | |
vouchers), the earnings are to be treated as received in the tax year mentioned | |
in section 88. | 40 |
(4) If subsection (2) or (3) does not apply, the earnings are to be treated as received | |
at the time when the benefit is provided. | |
33 Earnings remitted to the United Kingdom | |
(1) This section explains what is meant for the purposes of this Chapter by general | |
earnings being remitted to the United Kingdom. | 45 |
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(2) If general earnings are— | |
(a) paid, used, or enjoyed in the United Kingdom, or | |
(b) transmitted or brought to the United Kingdom in any manner or form, | |
they are to be treated as remitted to the United Kingdom at the time when they | |
are so paid, used or enjoyed or dealt with as mentioned in paragraph (b). | 5 |
(3) If, in the case of an employee who is ordinarily resident in the United | |
Kingdom, general earnings are used outside the United Kingdom to satisfy a | |
UK-linked debt, they are to be treated as remitted to the United Kingdom at the | |
time when they are so used. | |
This is subject to subsection (5)(b). | 10 |
(4) In subsection (3) “UK-linked” debt, in relation to an employee, means— | |
(a) a debt for money lent to the employee in the United Kingdom, or for | |
interest on money so lent, or | |
(b) a debt for money lent to the employee outside the United Kingdom and | |
received in the United Kingdom, or | 15 |
(c) a debt incurred for satisfying— | |
(i) a debt falling within paragraph (a) or (b), or | |
(ii) another debt falling within this paragraph. | |
(5) In the case of a debt (within subsection (4)(b) or (c)) for money lent to the | |
employee outside the United Kingdom — | 20 |
(a) it does not matter whether the money lent is received in the United | |
Kingdom before or after the general earnings are used to satisfy the | |
debt, but | |
(b) if the money lent is not received in the United Kingdom until after the | |
general earnings are used to satisfy the debt, the general earnings are to | 25 |
be treated as remitted to the United Kingdom at the time when the | |
money lent is received there (instead of at the time provided in | |
subsection (3)). | |
(6) In subsections (4) and (5) any reference to money lent being received in the | |
United Kingdom includes a reference to its being brought there. | 30 |
(7) Section 34 (further provisions about UK-linked debts) applies for the purposes | |
of subsections (3) to (5). | |
34 Earnings remitted to the United Kingdom: further provisions about UK- | |
linked debts | |
(1) This section applies for the purposes of the provisions of section 33 which | 35 |
relate to general earnings that are used to satisfy a UK-linked debt. | |
(2) General earnings are to be treated as used to satisfy a debt for money lent to a | |
person (“the borrower”) if conditions A and B are met. | |
(3) Condition A is that the earnings are dealt with in such a way that the lender | |
holds money or property representing the earnings on behalf of or on account | 40 |
of the borrower in such circumstances that it is available to the lender to satisfy | |
or reduce the debt (by set-off or otherwise). | |
(4) Condition B is that under an arrangement between the borrower and the | |
lender— | |
(a) the amount for the time being owed by the borrower to the lender, or | 45 |
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(b) the time at which the debt is to be wholly or partly repaid, | |
depends in any respect, directly or indirectly, on the amount or value the | |
lender holds on behalf of or on account of the borrower as mentioned in | |
subsection (3). | |
(5) If and to the extent that money lent is used to satisfy a debt, the debt for the | 5 |
money lent is to be treated as incurred for satisfying that other debt. | |
(6) In this section “lender” includes, in relation to any money lent, any person for | |
the time being entitled to repayment. | |
(7) In this section and section 33 “satisfy”, in relation to a debt, means satisfy | |
wholly or in part. | 10 |
Relief for delayed remittances | |
35 Relief for delayed remittances | |
(1) A person may make a claim for relief under this section for a tax year in respect | |
of delayed remittances from an employment. | |
(2) “Delayed remittances” are general earnings of the person which— | 15 |
(a) were received in a country or territory outside the United Kingdom before the | |
tax year for which relief is claimed, | |
(b) were not remitted to the United Kingdom until that tax year, | |
(c) could not have been transferred by the person to the United Kingdom | |
before that tax year because of— | 20 |
(i) the laws of the country or territory where they were received, | |
(ii) executive action of its government, or | |
(iii) the impossibility of obtaining there currency (other than the | |
currency of that country or territory) that could be transferred | |
to the United Kingdom, and | 25 |
(d) constitute taxable earnings from the employment in that tax year under | |
section 22(2) or 26(2) (general earnings which are taxable earnings if | |
remitted to UK). | |
(3) If a person claims relief for a tax year in respect of delayed remittances from an | |
employment, the amount of the remittances— | 30 |
(a) is to be deducted from the person’s general earnings which constitute | |
taxable earnings from the employment in that year under section 22(2) | |
or 26(2); and | |
(b) is instead to constitute taxable earnings from the employment under | |
that provision in one or more earlier tax years in accordance with— | 35 |
(i) subsection (4), or | |
(ii) alternatively, section 36 where an election is made under that | |
section. | |
(4) Where this subsection applies— | |
(a) the amount referred to in subsection (3)(b) is to be treated as taxable earnings | 40 |
from the employment in the tax year in which it was received, or | |
(b) if it consists of general earnings received in two or more tax years, so much of | |
the amount as was received in each of those years is to be treated as taxable | |
earnings from the employment in that year. | |
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