Foreign Fellowships and Honoraria

Dear HMRC Admins, I am a full-time PhD student in receipt of a scholarship from a UK university. In the 2022/3 tax year, I was also awarded a stipend as part of a pre-doctoral fellowship at a US university. Although mostly remote, the fellowship did include two workshops in the US. A separate American university paid me an honorarium in exchange for writing a paper and presenting it in person. Most of the travel, accommodation and meals were met directly by these two institutions, with further, incidental expenditure covered by myself. My question is two-fold: 1) Is my understanding of Section 776 IT(TOI)A 2005 correct in that the US fellowship is tax exempt? 2) Am I correct in treating the honorarium as subject to income tax with deductions for subsistence expenses incurred by myself? I am domiciled in, and a tax resident of, the UK. Many thanks for your time and a Happy New Year,

Hi,

1. If it doesnt meet the condition below, then yes its tax exempt.
   
   BIM65151 - Research grants and fellowships: overview
    
2. That is correct.

Thank you.