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

Location of employment duties

Section 41Y establishes the rules for determining where employment duties are located for the purposes of the foreign income rules, covering periods of absence, duties on vessels or aircraft, and work on the UK continental shelf.

• During a period of absence from employment, the rules for locating general earnings also apply to third party income (i.e. income from arrangements involving someone other than the employer).
• Duties performed on board a vessel or aircraft are located according to the existing rules on the place of performance of such duties.
• Any employment duties carried out in the UK sector of the continental shelf in connection with exploration or exploitation activities are treated as if they were performed in the United Kingdom.
• The terms "UK sector of the continental shelf" and "exploration or exploitation activities" take the same meaning as used elsewhere in the Act in relation to general earnings from continental shelf employment.