FTT agrees with HMRC that employment-related securities rules override the tax exemption for termination payments (Hemingway v HMRC)

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Article summary

Tax analysis: In Hemingway v HMRC, the First-tier Tax Tribunal (FTT) dismissed the taxpayer's appeal that a payment made to him in respect of the cancellation of stock options was taxable as a payment on termination of employment, and held instead that the payment was taxable under employment-related securities rules. The FTT also dismissed the taxpayer's second ground of appeal, that a second closure notice issued by HMRC was invalid because the enquiry into the taxpayer's first tax return had been retrospectively validated by section 12D of the Taxes Management Act 1970 (TMA 1970).