MICHAEL SAUNDERS v Revenue & Customs (INCOME TAX - award made to Appellant pursuant to long-term incentive plan) [2024] UKFTT 300 (TC) (02 April 2024)

MICHAEL SAUNDERS v Revenue & Customs (INCOME TAX - award made to Appellant pursuant to long-term incentive plan) [2024] UKFTT 300 (TC) (02 April 2024)

The payment received by Mr Saunders under the SARs was earnings from employment, earned during his period of UK residency, and taxable as general earnings in the year received. The payment was not excluded by split-year treatment as it related to duties performed in the UK.

Citation
[2024] UKFTT 300
Parties
Appellant: Michael Saunders; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
02 April 2024
Procedural Posture
Income Tax Appeal / Final Judgment at First Tier Tribunal (tax)
Outcome
Appeal dismissed
Legal Topics
Income Tax, Employment Income, Long Term Incentive Plans, Split Year Treatment, Taxation of Employment Related Payments
Tax Law Income Tax Employment Income Long Term Incentive Plans Split Year Treatment Taxation of Employment Related Payments

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Parties

Michael Saunders

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / Final Judgment at First Tier Tribunal (tax)

Legal Issues

  1. 1 Whether payment received after cessation of employment under a long-term incentive plan is taxable as general earnings
  2. 2 Whether payment should be apportioned to non-resident part of split year

Ratio Decidendi

The payment received by Mr Saunders under the SARs was earnings from employment, earned during his period of UK residency, and taxable as general earnings in the year received. The payment was not excluded by split-year treatment as it related to duties performed in the UK.

Court Disposition

Appeal dismissed

Orders

  • Payment is taxable as general earnings for period of employment
  • No apportionment to non-resident part of split year