Payments in lieu of notice
In P Goldberg v HMRC (TC00628 – 23 August) an individual (G) began working for a company in 2002. In August 2004 he was made redundant and was paid £76 872 in lieu of notice. In his tax return he claimed a repayment on the basis that the first £30 000 of this was exempt from tax. HMRC issued an amendment charging tax on the basis that the payment had been made in accordance with G’s contract of employment and was therefore a taxable emolument which did not qualify for exemption. G appealed. The First-Tier Tribunal dismissed his appeal applying the principles laid down in EMI Group Electronics Ltd v Coldicott [1999] STC 803 and SCA Packaging Ltd v HMRC [2007] STC 1640.
Why it matters: The Tribunal upheld HMRC’s interpretation of the facts surrounding the appellant’s redundancy. Unfortunately...
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Payments in lieu of notice
In P Goldberg v HMRC (TC00628 – 23 August) an individual (G) began working for a company in 2002. In August 2004 he was made redundant and was paid £76 872 in lieu of notice. In his tax return he claimed a repayment on the basis that the first £30 000 of this was exempt from tax. HMRC issued an amendment charging tax on the basis that the payment had been made in accordance with G’s contract of employment and was therefore a taxable emolument which did not qualify for exemption. G appealed. The First-Tier Tribunal dismissed his appeal applying the principles laid down in EMI Group Electronics Ltd v Coldicott [1999] STC 803 and SCA Packaging Ltd v HMRC [2007] STC 1640.
Why it matters: The Tribunal upheld HMRC’s interpretation of the facts surrounding the appellant’s redundancy. Unfortunately...
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