Nigel Doran (Macfarlanes) considers a recent case on the taxation of payments to employees for injury to feelings arising from discriminatory treatment culminating in the termination of their employment.
Moorthy v HMRC [2016] UKUT 13 (reported in Tax Journal 29 January 2016) is the latest in a line of cases considering the taxation of payments to employees for injury to feelings arising from discriminatory treatment culminating in the termination of their employment. It dramatically reverses the previously settled practice.
The facts
In 2009 the appellant Krishna Moorthy and others were told by their employer that a restructuring would lead to compulsory redundancies. He was not chosen to stay on and accordingly following garden leave was made redundant. He received statutory redundancy pay of £10 640 from which no tax was...
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Nigel Doran (Macfarlanes) considers a recent case on the taxation of payments to employees for injury to feelings arising from discriminatory treatment culminating in the termination of their employment.
Moorthy v HMRC [2016] UKUT 13 (reported in Tax Journal 29 January 2016) is the latest in a line of cases considering the taxation of payments to employees for injury to feelings arising from discriminatory treatment culminating in the termination of their employment. It dramatically reverses the previously settled practice.
The facts
In 2009 the appellant Krishna Moorthy and others were told by their employer that a restructuring would lead to compulsory redundancies. He was not chosen to stay on and accordingly following garden leave was made redundant. He received statutory redundancy pay of £10 640 from which no tax was...
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:
