Sjumarken v Revenue & Customs [2011] UKFTT 37 (TC) (07 January 2011)

Sjumarken v Revenue & Customs [2011] UKFTT 37 (TC) (07 January 2011)

The SIP and CIP were not tax approved plans under UK law, and no binding compromise agreement was reached between the appellant and HMRC; therefore, the payments are liable to income tax and NICs.

Citation
[2011] UKFTT 37 (TC)
Parties
Appellant: Lars Sjumarken; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
07 January 2011
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Corporation Tax, Exemptions and Reliefs, Employee Share Incentive Plans, Compromise Agreements
Tax Law Income Tax Corporation Tax Exemptions and Reliefs Employee Share Incentive Plans Compromise Agreements

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Parties

Lars Sjumarken

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether the Share Incentive Plan (SIP) and Cash Incentive Plan (CIP) were tax approved and exempt from income tax and NICs
  2. 2 Whether a binding compromise agreement was reached between the appellant and HMRC regarding tax liability

Ratio Decidendi

The SIP and CIP were not tax approved plans under UK law, and no binding compromise agreement was reached between the appellant and HMRC; therefore, the payments are liable to income tax and NICs.

Court Disposition

Appeal dismissed

Orders

  • Amendments to the appellant's self-assessment upheld as stated in the closure notice of 6 January 2010