In G Reid v HMRC (TC01877 – 22 March) a company appointed a new managing director (R) in 2005. In July 2007 he ceased to be managing director and was given the title ‘commercial director’. In January 2008 he left the company under an agreement by which he received a termination payment of £77 731. The company treated £30 000 of this as free of tax under ITEPA 2003 s 403 and deducted tax from the balance. R appealed contending that a further £30 000 should be treated as non-taxable compensation for the loss of rights under the company’s enterprise management incentive scheme. The First-tier Tribunal rejected this contention and dismissed his appeal.
Why it matters: The director claimed that part of the termination payment which he received should be treated as non-taxable compensation for the loss of rights...
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In G Reid v HMRC (TC01877 – 22 March) a company appointed a new managing director (R) in 2005. In July 2007 he ceased to be managing director and was given the title ‘commercial director’. In January 2008 he left the company under an agreement by which he received a termination payment of £77 731. The company treated £30 000 of this as free of tax under ITEPA 2003 s 403 and deducted tax from the balance. R appealed contending that a further £30 000 should be treated as non-taxable compensation for the loss of rights under the company’s enterprise management incentive scheme. The First-tier Tribunal rejected this contention and dismissed his appeal.
Why it matters: The director claimed that part of the termination payment which he received should be treated as non-taxable compensation for the loss of rights...
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