In E.ON UK plc v HMRC [2022] UKUT 196 (TCC) (19 July 2022) the UT considered whether a payment made to employees in respect of adverse changes to a company pension scheme were derived 'from' employment and therefore subject to taxation as employment income and employed earner's earnings. The UT concluded that the FTT had erred in law in limiting the application of the principle arising from Tilley v Wales [1943] AC 386 to accrued pension rights only (and not expectations under such schemes). The UT concluded that the payment was made in return for diminution of expected future pension rights and therefore was not derived from employment (and therefore not taxable as employment income). The UT allowed the appeal and the decision of the FTT was set aside and re-made. Read the decision.
IHT business property relief
In Mr Bruce Firth and...
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In E.ON UK plc v HMRC [2022] UKUT 196 (TCC) (19 July 2022) the UT considered whether a payment made to employees in respect of adverse changes to a company pension scheme were derived 'from' employment and therefore subject to taxation as employment income and employed earner's earnings. The UT concluded that the FTT had erred in law in limiting the application of the principle arising from Tilley v Wales [1943] AC 386 to accrued pension rights only (and not expectations under such schemes). The UT concluded that the payment was made in return for diminution of expected future pension rights and therefore was not derived from employment (and therefore not taxable as employment income). The UT allowed the appeal and the decision of the FTT was set aside and re-made. Read the decision.
IHT business property relief
In Mr Bruce Firth and...
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