EIM00690 - Employment income: earnings from employment: sum paid for restricting an employee's freedom within the employment
Section 62 ITEPA 2003
An employee바카라 사이트檚 conditions of service may alter through their losing rights as an employee. That happened in Hamblett v Godfrey (59TC694), where the taxpayer lost her rights under the employment protection legislation, principally the right to join a trade union. She received a payment of 拢1,000 in consequence. It was held to be taxable as earnings within Section 62 ITEPA 2003 (see EIM00515). Neill L J said:
바카라 사이트淭he rights had been enjoyed within the employer/employee relationship. The removal of the rights involved changes in the conditions of service. The payment was in recognition of the changes in service 바카라 사이트� It was referable to the employment and to nothing else.바카라 사이트� (page 727)
This case demonstrates very clearly that a payment does not have to be a reward for services to be taxable as earnings within Section 62.