I would be grateful for any help or comments on my reasoning.
One of my client has received a one-off payment arising from the sale of shares, which were given as consideration for services.
The agreement stated that my client would be granted stock-options vesting over the period of the consultancy services. The company was subsequently bought and at this stage the client was paid and the consultancy stopped. Am I right in thinking the receipt would be treated as income? Furthermore, as the individual is otherwise employed by a different company and the consultancy service was a one-off, I believe this would this be treated as miscelleaneous receipt, rather than trade income, against which the Trading and Misc. Income allowance of £1,000 would be available. The sum received amounts to roughly £2,500.