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 the appellant under the SARs was earnings from employment, earned during the period of UK residence, and is taxable as general earnings for that period. The payment is not excluded by split year provisions and is fully taxable in the year received.

Citation
[2024] UKFTT 300 (TC)
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 Chamber)
Outcome
Appeal dismissed
Legal Topics
Income Tax, Employment Income, Long Term Incentive Plans, Split Year Treatment, Stock Appreciation Rights
Tax Law Income Tax Employment Income Long Term Incentive Plans Split Year Treatment Stock Appreciation Rights

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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 Chamber)

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 the appellant under the SARs was earnings from employment, earned during the period of UK residence, and is taxable as general earnings for that period. The payment is not excluded by split year provisions and is fully taxable in the year received.

Court Disposition

Appeal dismissed

Orders

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