Wilson (HM Inspector of Taxes) v Clayton: CA 7 Dec 2004

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 so was outside a charge to tax. S131(1) extended the meaning of ’emolument’ and the extended meaning included such payments.


Lord Justice Peter Gibson Lady Justice Arden Lord Justice Clarke


[2004] EWCA Civ 1657, Times 12-Jan-2005




Income and Corporation Taxes Act 1988 148


England and Wales


Appeal fromWilson (HM Inspector of Taxes) v Clayton ChD 29-Apr-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 . .
CitedShilton v Wilmshurst HL 7-Feb-1991
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: . .
Lists of cited by and citing cases may be incomplete.

Income Tax, Employment

Updated: 27 June 2022; Ref: scu.220054