SCA Packaging Ltd v HM Customs & Excise [2007] EWHC 270 (Ch) (22 February 2007)

SCA Packaging Ltd v HM Customs & Excise [2007] EWHC 270 (Ch) (22 February 2007)

Payments in lieu of notice made to redundant employees under the terms of their contracts (including the Memorandum) are emoluments from employment under section 19 of the Income and Corporation Taxes Act 1988, as the contracts expressly provided for such payments, and thus are chargeable to income tax and NICs.

Citation
[2007] EWHC 270 (Ch)
Parties
Appellant: SCA Packaging Limited; Respondents: The Commissioners for Her Majesty's Customs & Excise
Jurisdiction
England and Wales
Judgment Date
22 February 2007
Procedural Posture
Appeal / High Court Judgment on Appeal From Special Commissioner
Outcome
Appeal dismissed
Legal Topics
Income Tax on Redundancy Payments, Emoluments From Employment, Payment in Lieu of Notice, Contractual Interpretation
Tax Law Employment Law Income Tax on Redundancy Payments Emoluments From Employment Payment in Lieu of Notice Contractual Interpretation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 3 Party arguments 2
Sign in to unlock

Parties

SCA Packaging Limited

Appellant

The Commissioners for Her Majesty's Customs & Excise

Respondents

Procedural Posture

Appeal / High Court Judgment on Appeal From Special Commissioner

Legal Issues

  1. 1 Whether payments in lieu of notice made to redundant employees under a Memorandum are emoluments from employment and chargeable to income tax and NICs under section 19 of the Income and Corporation Taxes Act 1988

Ratio Decidendi

Payments in lieu of notice made to redundant employees under the terms of their contracts (including the Memorandum) are emoluments from employment under section 19 of the Income and Corporation Taxes Act 1988, as the contracts expressly provided for such payments, and thus are chargeable to income tax and NICs.

Court Disposition

Appeal dismissed

Orders

  • The appeal by SCA Packaging Limited is dismissed.