Income tax on earnings

An employee’s tax position can sometimes depend on whether they carry out their duties in the UK or elsewhere. This is the case if the employee is non-resident in the UK, not domiciled in the UK with the remittance basis applying (to 2024/25), or entitled to relief from 2025/26 on the basis that they are a ‘qualifying new resident’ (see the Tax on cash earnings ― overview guidance note for more details).

Note also that the non-UK domicile basis of taxation was abolished from 6 April 2025. For further details of the impact of the post-April 2025 rules, see the Foreign income and gains regime ― overview guidance note.

Some offshore oil and gas installations in waters around the UK are outside UK territorial waters. Regardless of that geographic position, the special rule below treats qualifying duties in the UK sector of the Continental Shelf as performed in the UK for income tax purposes if:

1. •

   the worker’s duties are carried out in connection with the exploration or exploitation of natural resources