In Graeme Forsyth v HMRC [2014] UKFTT 915 – 24 September 2014 the FTT found that a payment made on the termination of membership in a healthcare scheme was employment income.
Mr Forsyth had retired from Nestlé UK in 1995. Prior to his retirement he had been a member of its healthcare scheme. It was agreed that he would continue to benefit from the scheme in consideration of a contribution. In 2009 Nestlé offered Mr Forsyth the opportunity to leave the scheme in return for a one-off payment of £29 783. Mr Forsyth accepted the offer under a compromise agreement. Nestlé made the payment after deduction of income tax.
Mr Forsyth contended that the payment was capital; and in the alternative that it was a termination payment so that the first £30 000 was exempt (ITEPA 2003 s...
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In Graeme Forsyth v HMRC [2014] UKFTT 915 – 24 September 2014 the FTT found that a payment made on the termination of membership in a healthcare scheme was employment income.
Mr Forsyth had retired from Nestlé UK in 1995. Prior to his retirement he had been a member of its healthcare scheme. It was agreed that he would continue to benefit from the scheme in consideration of a contribution. In 2009 Nestlé offered Mr Forsyth the opportunity to leave the scheme in return for a one-off payment of £29 783. Mr Forsyth accepted the offer under a compromise agreement. Nestlé made the payment after deduction of income tax.
Mr Forsyth contended that the payment was capital; and in the alternative that it was a termination payment so that the first £30 000 was exempt (ITEPA 2003 s...
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