In A Gomez Rubio v HMRC (TC02047 – 19 June) a Spanish citizen (G) began working for a Spanish company (S) which was a member of an international group in 1991. In 2000 he was transferred to a UK company (SU) in the same group. In 2003 his employment was terminated. Following negotiations SU paid G £694 783 as compensation. Following an enquiry HMRC issued a ruling that part of this payment was taxable under ITEPA 2003 s 62. R appealed contending that the whole of the payment should be treated as compensation for loss of employment within ITEPA 2003 s 401 and as qualifying for relief for ‘foreign service’ under ITEPA 2003 s 413. The First-tier Tribunal accepted this contention and allowed R’s appeal.
In A Gomez Rubio v HMRC (TC02047 – 19 June) a Spanish citizen (G) began working for a Spanish company (S) which was a member of an international group in 1991. In 2000 he was transferred to a UK company (SU) in the same group. In 2003 his employment was terminated. Following negotiations SU paid G £694 783 as compensation. Following an enquiry HMRC issued a ruling that part of this payment was taxable under ITEPA 2003 s 62. R appealed contending that the whole of the payment should be treated as compensation for loss of employment within ITEPA 2003 s 401 and as qualifying for relief for ‘foreign service’ under ITEPA 2003 s 413. The First-tier Tribunal accepted this contention and allowed R’s appeal.
