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The taxpayer was a Spaniard employed in his homeland by the company S Spain.
He moved to the UK in 2000 to work for another firm in the same group S UK. During his tenure he was resident and not ordinarily resident in the UK.
In June 2003 the taxpayer was dismissed by the company and received a payment of £694 783 less tax of £72 477 under a compromise agreement.
He showed in his 2003/04 tax return the tax deducted by S UK and claimed a repayment of £59 681. HMRC refused saying the entire payment was taxable under ITEPA 2003 s 62.
The First-tier Tribunal found the payment was not for work carried out under a contract of employment with S UK.
The company had dismissed the taxpayer which effectively put an end to the employment relationship.
Furthermore ...
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