A company, at the relevant time director controlled, made a payment to its managing director in consideration for his undertaking not to compete with the company within five years of the date when he would leave its service.
Held: The transaction was one involving a commercial basis to buy an asset of value to the company and should not be treated as a distribution for the benefit of the managing director.
Judges:
Harman J
Citations:
(1954) 35 TC 230
Jurisdiction:
England and Wales
Citing:
Cited – Beak v Robson HL 1942
The issue was whether a payment to an employee in return for a restrictive covenant escaped tax. The obligations flowing from the contract of service and the remuneration to be received by the Respondent in respect of that service were entirely . .
Cited by:
Cited – RCI Europe Ltd v Kate Woods (HM Inspector of Taxes) ChD 16-Dec-2003
The company made payments to a former director in return for a severance agreement which restricted his future business activities.
Held: Despite the fact that all payments were made only after his employment had been terminated, they remained . .
Lists of cited by and citing cases may be incomplete.
Income Tax
Updated: 13 May 2022; Ref: scu.190493
