Commentary

(i) Emolument from consensual termination without breach

Division BII Taxation of Employment Income
| Commentary

(i) Emolument from consensual termination without breach

| Commentary

(i)     Emolument from consensual termination without breach

In Richardson v Delaney [2001] IRLR 663, [2001] STC 1328, Lloyd J the question was whether, when an employer gave notice in accordance with the terms of the contract and a consensual termination was subsequently agreed on certain terms, the payment made on termination was taxable as an emolument, or only under the provisions relating to termination payments. It was held that the payment was correctly charged as an emolument. In the absence of any breach of contract the source of the payment was the contract of employment. The

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