Income Tax (Earnings and Pensions) Act 2003 Schedule 7 para 8

Taxable earnings

Schedule 7 paragraph 8 sets out transitional rules for how the taxable earnings provisions in ITEPA 2003 apply to earnings from earlier tax years, including special exceptions for certain overseas and foreign earnings predating 1989-90.

• The taxable earnings rules in Chapters 4 and 5 of Part 2 apply from the tax year 2003-04 onwards, whenever general earnings are received or remitted to the UK in that or any later year.
• These rules can also apply to general earnings for tax years before 2003-04, not just earnings for 2003-04 and later years.
• However, if chargeable overseas earnings or foreign earnings relate to a tax year before 1989-90 and are remitted to the UK in 2003-04 or later, they escape the remittance basis charge where the employee is either not UK resident in the remittance year or no longer holds the employment.
• The rule in section 30 dealing with earnings for a year in which the employment is not held does not apply where any of the relevant tax years referred to in that section falls before 1989-90.