SE42220 - Emoluments from offices and employments: basis of assessment - emoluments received before an employment starts or after it ends

Section 202A(2)(b) ICTA 1988

An emolument is charged to tax in the year it is received (or, if within Case III, received in the United Kingdom) whether or not the office or employment is held at the time of receipt. The meaning of “received” is explained at SE42260. The meaning of “received in the United Kingdom” is explained at SE42370.

So if an emolument is received before a job starts or after it ends you look at the year to which the emolument relates to see if it falls within one of the three Cases of Schedule E (see generally SE40001 onwards). If it does, it is taxable in the year of receipt even if the job had not started when it was received or had ended before it was received.

See example SE42221 for an example of a case where an emolument is received before an employment starts

See example SE42222 for an example of a case where an emolument is received after an employment ends.

If it is claimed that an emolument cannot be attributed to any period during which the job was held see SE40005.

For emoluments paid after the death of the employee see SE42380 to SE42400.