Finance Act 1977

31 Earnings from work done abroad

(1) Schedule 7 to this Act shall have effect for affording relief from tax under Case I of Schedule E where the duties of an office or employment are performed wholly or partly outside the United Kingdom.

(2) A deduction shall not be allowed in respect of the same emoluments both under Schedule 7 to this Act and paragraph 3 of Schedule 2 to the [1974 c. 30.] Finance Act 1974 (foreign emoluments); and paragraph 4 of Schedule 7 to this Act shall, with the necessary modifications, have effect in relation to the amount of emoluments to be excepted under paragraph 4 of the said Schedule 2 as it has effect in relation to the amount of emoluments in respect of which a deduction is allowed under paragraph 1 of the said Schedule 7.

(3) In consequence of the foregoing provisions, the Income Tax Acts shall be amended as follows—

(a) in Case I in paragraph 1 of Schedule E as set out in section 181(1) of the Taxes Act for the words from " subject, however, to the deduction or exception" onwards there shall be substituted the words " subject, however, to the deduction or exception provided for in Schedule 2 to the Finance Act 1974 if the emoluments are foreign emoluments and to the deduction proveded for in Schedule 7 to the Finance Act 1977 if in the chargeable period he performs the duties of the office or employment wholly or partly outside the United Kingdom ";

(b) in section 184(3) of the Taxes Act after the words "For the purposes of Cases I and II of Schedule E " there shall be inserted the words " , but subject to paragraph 7 of Schedule 7 to the Finance Act 1977, ";

(c) in paragraph 16 of Schedule 8 to the Taxes Act after the words "the Finance Act 1974" there shall be inserted the words " or paragraph 1 of Schedule 7 to the Finance Act 1977 ";

(d) section 21(2) of the Finance Act 1974 and paragraphs 1 and 2 of Schedule 2 to that Act shall cease to have effect.

(4) This section has effect for the year 1977-78 and subsequent years of assessment but without prejudice to any deduction—

(a) under paragraph 1 of Schedule 7 to this Act for that or a subsequent year by virtue of a period falling partly in a year before the year 1977-78 ; or

(b) under paragraph 1 of Schedule 2 to the said Act of 1974 for a year before the year 1977-78 by virtue of a period falling partly in that or a subsequent year.