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22 November 2007
Categories:
Tax cases
Minto (SpC 625)
The taxpayer's employer took out permanent health insurance on his behalf. From September 2000 the taxpayer was off work with alleged work-related stress. He was made redundant in March 2002. Under a compromise agreement made at that time the employer agreed to:
- transfer the insurance policy to the appellant;
- pay him an enhanced redundancy payment and £12 500 compensation for loss of employment; and
- pay him £47 000 'in settlement of his prospective injury claim related to alleged work-related stress'.
The taxpayer also without taking legal advice signed an insurance company document 'continuation of benefit' which said that he would continue to be paid PHI benefit until July 2015 at an annual rate of £52 000 subject to annual increases of 5%. These payments would be taxable.
HMRC amended the taxpayer's self-assessment return for 2002-03 to...
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