Income Tax (Earnings and Pensions) Act 2003 section 6

Nature of charge to tax on employment income

Section 6 sets out how the income tax charge on employment income is structured, dividing it into two categories and explaining which rules apply to each.

• Employment income is taxed under two headings: general earnings (such as salary and benefits) and specific employment income (amounts taxable under particular statutory provisions, for example relating to securities)
• Rules about an employee's UK residence, whether the remittance basis applies, and the tax year in which amounts are received or remitted to the UK affect the charge on general earnings but generally do not affect specific employment income
• An exception exists for certain specific employment income arising under Part 7 (securities and related amounts), where residence and remittance basis rules do apply
• Employment income of divers and diving supervisors is excluded from this charge because it is instead taxed as trading income under separate legislation