Commentary

(g) Dismissal and re-engagement, compromise of genuine dispute

Division BII Taxation of Employment Income
| Commentary

(g) Dismissal and re-engagement, compromise of genuine dispute

| Commentary

(g)     Dismissal and re-engagement, compromise of genuine dispute

Seventh, the employee is dismissed and re-engaged on other terms. A payment is made in satisfaction of a genuine dispute between employer and employee about the circumstances of the dismissal. This is taxable only under the termination provisions, and not as an emolument of the employment (Wilson v Clayton [2004] EWCA Civ 1657, [2005] IRLR 108, [2005] STC 157).

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