The words are important!

July 20, 2012

From Grant Hayward v Revenue & Customs [2012] UKFTT 431 (TC) (04 July 2012):

“It also follows from the fact that we have no evidence to enable us to attribute any identifiable part of the Payment to the value of his surrendered employment law rights that we must find as a fact that the whole of the Payment was consideration for Mr Hayward’s surrender of his accrued right to be paid at least six month’s salary as above.”

… and …

“The fact that the Payment is described as compensation for loss of employment on redundancy in the Compromise Agreement cannot affect this conclusion. Further, on a view of all the relevant facts as set out above, we consider that the wording of the Compromise Agreement in this regard was probably settled with a view to assisting Mr Hayward to put forward a claim to the exemption of £30,000 under section 403(1) ITEPA … The Payment therefore was for these reasons earnings of Mr Hayward’s employment, taxable in full under section 62 ITEPA.” (my emphasis)

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