Commentary

(k) Damages and compensation unconnected with remuneration, not emolument

Division BII Taxation of Employment Income
| Commentary

(k) Damages and compensation unconnected with remuneration, not emolument

| Commentary

(k)     Damages and compensation unconnected with remuneration, not emolument

A sum paid as damages, or in compromise, for breach of the contract of employment, or as compensation for breach of a statutory right which is unconnected with remuneration, is not taxable as earnings from employment Wilson v Clayton [2004] EWCA Civ 1657, [2005] IRLR 108, [2005] STC 157; Du Cros v Ryall (1935) 19 TC 444, Finlay J). Similarly, a sum paid pursuant to an order of an employment tribunal on a claim for interim relief (in the context of

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