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 taxable emolument. A payment in lieu of notice made under a right given under the contract was not paid in breach of it.
Lloyd J
Times 11-Jul-2001, Gazette 09-Aug-2001
Income and Corporation Taxes Act 1988 148
England and Wales
Updated: 01 October 2021; Ref: scu.88774
