Income tax

The correct approach to determine whether the income receipts of an employee were emoluments or profits from employment was to consider all the facts relevant to the receipt of the income. That required the court not to be restricted to the legal form of the source of the payment but to focus on the character of the receipt in the hands of the recipient. Section 20(2) of the Income and Corporation Taxes Act 1988 had no application unless “a distribution chargeable under Sch F” was identified. It had no application to a payment chargeable under Sch E. Section 20(2) resolved the conflict where income from one and the same source, shares or certain securities, was charged under different Schedules.

That section provided that they had to be taxed under Sch F. It was not concerned to charge income under Sch F when the source of the income was charged under the different and mutually exclusive Sch E. A factual conclusion that income fell within Sch E precluded any finding