Market leading insight for tax experts
View online issue

Martin in the UT: clawback of bonuses

Speed read

The Upper Tribunal’s confirmation that relief is available for bonus clawbacks is welcome, but that relief is limited. Instead of repaying PAYE deducted from the bonus, the relief is a deduction against income in the tax year when the bonus is repaid. Even if the employee has sufficient income in that year, the £50,000/25% limit on loss relief might prevent effective relief being available. The decision highlights the importance of the terms of the employment contract. This was vital in securing relief and alternative contractual arrangements might secure more beneficial tax relief for other taxpayers.

If you or your firm subscribes to, 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 '' for further assistance.