Income Tax (Earnings and Pensions) Act 2003 section 554Z15

Location of employment duties

Section 554Z15 explains how existing rules about where employment duties are performed apply when determining the tax treatment of benefits provided through third parties.

• The standard rules for determining the location of employment duties (such as duties performed during absences, incidental UK duties, duties on vessels or aircraft, and continental shelf employment) are imported into the third-party benefits chapter.
• Where the imported rules refer to "general earnings", you should instead read this as the value of the relevant step (i.e. the third-party benefit) or a part of it.
• For duties performed on board a vessel or aircraft, the cross-reference used to determine whether earnings qualify as chargeable overseas earnings is updated to point to the equivalent condition within the third-party benefits rules.
• These modifications ensure that the location-of-duties rules work correctly in the context of employment income provided through third parties, rather than income paid directly as general earnings.