Explanatory Notes

Income Tax (Earnings and Pensions) Act 2003

2003 CHAPTER 1

6th March 2003

Commentary on Sections

Glossary

Part 3: Employment income: earnings and benefits etc. treated as earnings
Chapter 1: Earnings
Section 62: Earnings

251.This section sets out what constitutes the primary ingredient of employment income: earnings. It derives from section 131 of ICTA. The “money’s worth” principle incorporated in subsection (2) derives from long-established case law. See Note 13 in Annex 2.

252.The definition of earnings incorporates several suggestions received during the consultation process leading up to this Act to bring the language more up to date. In particular “emolument” does not now appear until subsection (2)(c).