Commentary

(g) Emolument not from the employer

Division BII Taxation of Employment Income
| Commentary

(g) Emolument not from the employer

| Commentary

(g)     Emolument not from the employer

The emolument need not be paid by the employer, it is enough if the payment is made by another for becoming or remaining an employee, even with someone other than the payer (Shilton v Wilmshurst [1991] 1 AC 684, 64 TC 78, HL: payment by Nottingham Forest FC to a footballer transferring to Southampton FC, held to be an emolument from employment with Southampton FC, rather than with the payer). Nor need the earnings be paid to the employee directly. They are still earnings if they are paid to another for his benefit or at his request. Further, once the employee becomes entitled to payment of the earnings, they are taxable in his hands even if he directs them via some other route. In Sloane Robinson Investment Services Ltd v Revenue and Customs Commissioners [2012] UKFTT 451 (TC), [2012] SFTD 1181 employees became entitled (see ITEPA 2003 ss 18, 686) to

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