Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

FURBS payment

01 March 2013
Issue: 4393 / Categories: Tax cases , Employees , Income Tax

GF Ballard (TC2505)

The taxpayer was made redundant from a brewery in September 2006 having worked there since May 1979. He decided he would not look for employment elsewhere but retire and live off his savings even though he was not yet 50.

He was a member of the firm’s funded unapproved retirement benefits scheme (FURBS). During the redundancy process he received shares from the scheme and sold them immediately. HMRC issued an assessment for higher rate tax on the amount received.

The taxpayer appealed claiming the redemption of shares was a relevant benefit taxable under ITEPA 2003 s 393B(1)(c) or (d) and this qualified for relief under FA 2004 Sch 36.

The First-tier Tribunal said although the taxpayer had been forced into redundancy he had decided to retire. The Revenue argued that the FURBS payment was connected with his redundancy rather than his retirement.

The...

Only subscribers may read the full article

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon