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E4.461 General

The cases cited in this article relate to liability under the legislation that had effect before 2003/04, in other words, the Schedule E legislation rather than the rewritten legislation in ITEPA 2003 (see E4.101). Accordingly, since the principles described here were established, not only have the statutory provisions changed, but so has the terminology used; see E4.401. However, the overall effect of existing rules is not changed by ITEPA 2003; see E4.101. Indeed, to ensure that existing case law will apply to anything that counts as an emolument but is not listed in the definition of 'earnings' introduced by ITEPA 2003, there is a single reference to the term 'emolument' in that definition; see E4.401.

For years before 2003/04, the only statutory guidance as to the tax treatment of a gift or voluntary payment was in the general Schedule E charging section which referred to an emolument from an office or employment (for the provisions as rewritten in ITEPA 2003, see above and E4.401)¹. The treatment of such payments therefore derives almost entirely from decisions of