Cornell v Revenue & Customs [2009] UKFTT 140 (TC) (11 June 2009)

Cornell v Revenue & Customs [2009] UKFTT 140 (TC) (11 June 2009)

The payment of £17,971.26 was a contractual payment in lieu of notice for a three-month period under the employment contract, not compensation for breach of contract, and is therefore taxable as employment income.

Citation
[2009] UKFTT 140
Parties
Appellant: Lynne Cornell; Respondents: The Commissioners for Her Majesty's Revenue and Customs (Income Tax)
Jurisdiction
United Kingdom
Judgment Date
11 June 2009
Procedural Posture
Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Employment Income, Taxation of Earnings, Emoluments, Payment in Lieu of Notice, Breach of Contract, Notice Period, Termination of Employment
Tax Law Employment Law Income Tax Employment Income Taxation of Earnings Emoluments Payment in Lieu of Notice Breach of Contract +2 more

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Parties

Lynne Cornell

Appellant

The Commissioners for Her Majesty's Revenue and Customs (Income Tax)

Respondents

Procedural Posture

Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether the payment of £17,971.26 to Ms Cornell was taxable as employment income or exempt as a termination payment
  2. 2 Whether the payment was a contractual payment in lieu of notice or compensation for breach of contract
  3. 3 Whether the applicable notice period was three months or one week

Ratio Decidendi

The payment of £17,971.26 was a contractual payment in lieu of notice for a three-month period under the employment contract, not compensation for breach of contract, and is therefore taxable as employment income.

Court Disposition

Appeal dismissed