TC09557 - [2025] UKFTT 00750 (TC)

We agree with Mr Sykes that “profits or gains”, as used in s 94(2)(a), includes a payment of employment income. This is essentially for the reasons given in his submissions and summarised above.

We agree that at the time that s 94(2)(a) was enacted, it was clear that the expression “profits or gains” included emoluments taxed under what was then Schedule E, and also agree that Parliament would not, without specific words, have intended to change this by the enactment of ITEPA 2003. We note, moreover, that ITEPA 2003, s 6(1) states that the charge to tax on employment income is a charge to tax on (inter alia) “general earnings”, and that the definition of “earnings” in ITEPA 2003, s 62(2) includes a reference to “profit”. This indicates that the term “profit” remains apt to describe a payment that is taxable as employment income.