Mr A v Revenue & Customs (Income tax/Corporation tax: Employment income) [2015] UKFTT 189
Appeal against the HMRC determination that the £600,000 received by the employee after leaving his employment was taxable under s62 ITEPA. Appeal allowed.
The claimant received £600,000 after leaving his employment with the employer bank. HMRC argued that the payoff was designed to make good shortfalls in salary and bonus whereas the employee argued that the sum was compensation in respect of the appellant's threatened race discrimination claim.
The FTT ruled in favour of the employee. The conclusion was that the whole payment of £600,000 was, although no admission of liability was made by the Bank, a payment in respect of settlement of the appellant's threatened claim for race discrimination.
Published: 29/06/2015 09:59
