Income Tax (Earnings and Pensions) Act 2003 section 10

Meaning of "taxable earnings" and "taxable specific income"

Section 10 defines two key terms — "taxable earnings" and "taxable specific income" — which are used throughout the employment income provisions to identify income at different stages on its way to becoming chargeable to tax.

• Taxable earnings from an employment for a tax year are determined by the residence and remittance rules in Chapters 4 and 5 of Part 2, which decide how much of a person's general earnings are brought into charge depending on their UK tax status.
• Taxable specific income is the full amount of any specific employment income that counts as employment income for the year under Part 6 (income not otherwise treated as earnings), Part 7 (share-related income), Part 7A (income provided through third parties), or any other legislation.
• Special rules in Chapter 5B modify taxable specific income from employment-related securities for internationally mobile employees, so that only an appropriate proportion is taxed in the UK.
• Sections 554Z9 to 554Z11 further modify taxable specific income where Part 7A income arises for individuals taxed on the remittance basis, so that only amounts remitted to the UK are charged.