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A Hill (TC4480)
The taxpayer worked for GM until June 2010 when his employment transferred under the Transfer of Undertakings Regulations 2006 to SC. He was not happy with the new conditions including the fact that he had to work a long way from home and raised a grievance with both companies.
This resulted in a compromise agreement under which each company paid him £15 000 in settlement of his complaints. He would continue to work for SC and if he left within two years of the date of the payments he would have to repay them.
A dispute arose over whether the payments were exempt from tax under ITEPA 2003 s 403. The taxpayer argued that the payments were in exchange for his agreement not to pursue a claim for damages against either GM or SC.
The First-tier Tribunal decided the payments were consideration for agreeing to...
