The claim against the defendant at the tribunal had been settled by a compromise which had then been the subject of an order by the tribunal. The Revenue sought to charge the payment to income tax. Held: It had been paid ‘in connection with’ the termination of his employment, was less than pounds 30,000 and … Continue reading Wilson (HM Inspector of Taxes) v Clayton: CA 7 Dec 2004
Taxability of compensation paid on compromise of claims after dismissal. The employer introduced new terms, withdrawing car benefits. Having refused the new terms the taxpayer was dismissed. A tribunal held him unfairly dismissed. The council re-instated him and others and made a compensatory payment. The Revenue contended that the re-instatement made the payment taxable. Held: … Continue reading Wilson (HM Inspector of Taxes) v Clayton: ChD 29 Apr 2004
An employer decided to end the employee’s employment and negotiated payment of a lump sum. The payment was within the terms of his employment contract. It was accordingly not a payment made to him in respect of a breach of the contract and was a . .
To avoid a restriction unlawful under European law of a company’s freedom of establishment in the context of the profits of a foreign controlled company and that company’s right of freedom of establishment, the court could properly read into the 1988 Act an additional exception.Sir Andrew Morritt, C quoted counsel in setting out the principles … Continue reading Vodafone 2 v HM Revenue and Customs: CA 22 May 2009
The taxpayer was transferred from one football club to another. He was paid andpound;75,000 to persuade him to move. The revenue appealed a decision that this was not a sum taxable as an emolument under Schedule E by the new employer. Held: The appeal was allowed. A payment was ‘from’ an employment if it was … Continue reading Shilton v Wilmshurst: HL 7 Feb 1991
There was not necessarily subsumed in the concession that a payment constituted an emolument from employment a conclusion that the payment must therefore be for a chargeable period within the aggregate period during which the employment subsisted. . .
