| Commentary

(3) Apportionment

| Commentary

(3)     Apportionment

Accordingly, it does not follow that, just because a payment is made under a compromise agreement taking effect on termination of employment, that payment is taxable only to the extent it exceeds £30,000. It is necessary to consider whether the agreement includes the compromise of elements on which a charge to tax has crystallised under other provisions and the sum may be apportioned appropriately (see Tilley v Wales [1943] AC 386, 25 TC 136, HL). The principle is seen in operation in Carter v Wadman (1946) 28 TC 41, CA.

'A lump sum

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