Income Tax (Earnings and Pensions) Act 2003 section 42

Commissioners to determine dispute as to domicile or ordinary residence

Section 42 provides a mechanism for resolving disputes between HMRC and a taxpayer about the taxpayer's domicile or ordinary residence status, which can affect how their employment income is taxed.

• Where there is a disagreement about whether a person is, or has been, domiciled or ordinarily resident in the UK, either side can refer the matter to HMRC for a formal determination.
• The dispute may relate to the person's status in the current tax year or in a previous tax year.
• HMRC will issue a ruling setting out their decision on the matter once a referral has been made.
• The section covers disputes arising from all the provisions in ITEPA 2003 that use residence, domicile, and place of performance of duties to determine how employment income is charged to tax, including provisions relating to certain earnings being excluded from charge where the employer and employee have particular residence or domicile statuses.