FTT holds discrimination settlement payment not taxable.
InL v HMRC [2024] UKFTT 1044 (TC) (18 November) the FTT held that the part of a settlement payment which related to a discrimination claim fell outside the scope of income tax on the basis that the payment was not ‘from employment’; instead it was made because the discrimination had deprived the former employee of the opportunity to perform her full role causing financial loss.
The taxpayer was employed as an executive director and was entitled to a base salary discretionary bonus and long-term incentive plan award. The taxpayer was made redundant in April 2013 and brought claims against her employer for discrimination harassment unfair dismissal and unequal pay. The claims were settled by an agreement in March 2014 with the employer paying the taxpayer a lump sum which was stated to comprise several aspects...
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FTT holds discrimination settlement payment not taxable.
InL v HMRC [2024] UKFTT 1044 (TC) (18 November) the FTT held that the part of a settlement payment which related to a discrimination claim fell outside the scope of income tax on the basis that the payment was not ‘from employment’; instead it was made because the discrimination had deprived the former employee of the opportunity to perform her full role causing financial loss.
The taxpayer was employed as an executive director and was entitled to a base salary discretionary bonus and long-term incentive plan award. The taxpayer was made redundant in April 2013 and brought claims against her employer for discrimination harassment unfair dismissal and unequal pay. The claims were settled by an agreement in March 2014 with the employer paying the taxpayer a lump sum which was stated to comprise several aspects...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
