DV Thomas v HMRC

In DV Thomas v HMRC (TC02463 – 24 January) a company director (T) retired in February 2009 at the age of 66 at the request of his employer (G). G paid him £37 200. T did not include this as taxable income on his 2008/09 return. After an enquiry HMRC issued an amendment to his self-assessment charging tax on it. T appealed. The FTT dismissed his appeal holding that the payment was a ‘relevant benefit’ which had been provided ‘on or in anticipation of the retirement of an employee’ within ITEPA 2003 s 393B and was taxable accordingly.

Read this decision.

Why it matters: The FTT upheld HMRC’s view that the payment made to the director was taxable under ITEPA 2003 s 393B.