Income Tax (Earnings and Pensions) Act 2003 section 41K

Securities income from overseas Crown employment

Section 41K deals with the tax treatment of securities income earned by Crown employees (such as diplomats and civil servants) who perform their duties outside the United Kingdom, ensuring that such income is generally taxed as UK income rather than being treated as foreign income.

• Securities income from overseas Crown employment that is subject to UK tax is not classified as "foreign" income, regardless of any other provisions in the chapter
• The term covers securities income from Crown employment where duties are performed outside the UK, such as by diplomats or overseas civil servants
• This securities income is automatically treated as subject to UK tax unless a specific exemption order applies, mirroring the exemptions that exist for general earnings from overseas Crown employment
• Where securities income is only partly from overseas Crown employment subject to UK tax, a just and reasonable apportionment must be made to determine the proportion treated as arising from such employment