.png)
.png)
The taxpayer was employed by the Babcock group. In 1997 he received a buyout payment of £33 148 in respect of a change to his contractual redundancy entitlement. Of this sum £30 000 was treated as tax exempt with the balance added to his salary for tax.
In 2005 the taxpayer was made redundant. He received £29 664 in lieu of notice and a redundancy payment of £61 930. In his tax return he claimed £30 000 should be exempt from tax. HMRC disallowed the claim on the basis that the exemption had been used up in 1997.
The First-tier Tribunal agreed with the taxpayer and HMRC appealed.
The Upper Tribunal (Finance and Tax) said the First-tier Tribunal was wrong to say that because there had been no actual termination in 1997 there could be no charge under
If you or your firm subscribes to Taxation.co.uk, please click the login box below:
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
