Market leading insight for tax experts
View online issue

Graeme Forsyth v HMRC

In Graeme Forsyth v HMRC [2014] UKFTT 915 – 24 September 2014 the FTT found that a payment made on the termination of membership in a healthcare scheme was employment income.

Mr Forsyth had retired from Nestlé UK in 1995. Prior to his retirement he had been a member of its healthcare scheme. It was agreed that he would continue to benefit from the scheme in consideration of a contribution. In 2009 Nestlé offered Mr Forsyth the opportunity to leave the scheme in return for a one-off payment of £29 783. Mr Forsyth accepted the offer under a compromise agreement. Nestlé made the payment after deduction of income tax.

Mr Forsyth contended that the payment was capital; and in the alternative that it was a termination payment so that the first £30 000 was exempt (ITEPA 2003 s 403(1)).

The FTT observed that the...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top