Commentary

(e) Redundancy payments—non-statutory

Division BII Taxation of Employment Income
| Commentary

(e) Redundancy payments—non-statutory

| Commentary

(e)     Redundancy payments—non-statutory

Non-statutory redundancy payments are not taxable either, however, save again under the provisions for taxation of termination payments. See Statement of Practice SP1/94, issued by the Revenue following revision of its practice in consequence of losing the case of Mairs v Haughey [1994] 1 AC 303, 66 TC 273.

'The taxpayer employee, whose employer was being bought out, was offered new employment as an alternative to redundancy. He received a payment to compensate him for discontinuance of a non-statutory redundancy scheme, part of his old terms of employment. The House of Lords held that

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