Market leading insight for tax experts
View online issue

E.ON UK plc v HMRC

Payments for pension changes were not ‘from’ employment.

In E.ON UK plc v HMRC [2022] UKUT 196 (TCC) (19 July 2022) the Upper Tribunal (UT) allowed the company’s appeal against the First-tier Tribunal’s (FTT) decision that a facilitation payment to an employee in respect of adverse changes to a pension scheme was derived from employment and taxable as employment income concluding that the FTT had made errors of law and set aside and re-made the decision.  

The company wished to reduce the costs associated with its defined benefits pension schemes. Following consultation with unions and employees an integrated package was agreed. Pursuant to the terms of the integrated package adverse changes were made to the pension rights of participants in the retirement balance scheme which would effectively result in the participants being required to increase their level of future contributions to retain the same level of pensions benefits. In...

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