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SCA Packaging Ltd v HM Customs and Excise: ChD 22 Feb 2007

The court was asked whether termination payments made to employees on redundancy and which had been calculated according to unexpired notice periods were liable to Schedule E income tax and national insurance. The calculations were based upon a memorandum of agreement between the company and the trades union.
Held: The memorandum could not sensibly be thought to abrogate an employee’s rights. Employees were entitled by their contracts and the memorandum to receive payments in lieu of notice. The payments made were as debts due under the contracts, and were emoluments. The taxpayers’ appeal was dismissed.

Judges:

Lightman J

Citations:

[2007] EWHC 270 (Ch)

Links:

Bailii

Statutes:

Income and Corporation Taxes Act 1988 19

Jurisdiction:

England and Wales

Employment, Income Tax

Updated: 09 July 2022; Ref: scu.248997

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