§ Sir A. Meyerasked the Chancellor of the Exchequer if he is aware that voluntary gifts of shares to workers in a company by a shareholder are liable to be taxed on the individuals under Schedule E as arising from their employment; and whether, in view of the desirability of greater participation by workers in industry, he will exempt such gifts from Income Tax and exempt the donor from Capital Gains Tax in respect of the disposal.
§ Mr. MacDermotThe general rule is that employees are liable to Income Tax on all emoluments from their employment, whether voluntary or contractual. I see no reason to depart from this rule when the emoluments take the particular form of shares in a company, nor from exempting the donor from any liability to Capital Gains Tax that may arise in respect of his disposal of the shares.