An employee's residence and (to 2024/25) domicile status are generally governed by the same legislation and tax cases which apply to any other individual. See however E4.1312A for a summary of the changes applicable as a result of the removal of the concept of non-UK domicile for tax purposes, from 2025/26.
Some years earlier, the statutory residence test (SRT) and associated revisions to the earnings legislation contained in FA 2013, Sch 45 became effective from 6 April 2013. This legislation superseded (but generally continued) the principles established by the pre-April 2013 non-statutory HMRC practices (see Division E6.1), including the residence and employment income practices for expatriate employees.
Effects of residence on UK tax liability
ITEPA 2003, ss 3 to 41L (Part 2, Chapters 2 to 5) set out the rules for taxing the income of resident and non-resident employees.
The basic principles are that:
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•ÌýÌýÌýÌý unless a treaty makes alternative provision, earnings from carrying out UK duties (other than merely incidental visits on behalf of a foreign employer) are subject
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Web page updated on 17 Mar 2025 16:52