Graeme Forsyth v HMRC

Cathya Djanogly

In Graeme Forsyth v HMRC [2014] UKFTT 915 – 24 September 2014 the FTT found that a payment made on the termination of membership in a healthcare scheme was employment income.

Mr Forsyth had retired from Nestlé UK in 1995. Prior to his retirement he had been a member of its healthcare scheme. It was agreed that he would continue to benefit from the scheme in consideration of a contribution. In 2009 Nestlé offered Mr Forsyth the opportunity to leave the scheme in return for a one-off payment of £29 783. Mr Forsyth accepted the offer under a compromise agreement. Nestlé made the payment after deduction of income tax.

Mr Forsyth contended that the payment was capital; and in the alternative that it was a termination payment so that the first £30 000 was exempt (ITEPA 2003 s 403(1)).

The FTT observed that the...

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In Graeme Forsyth v HMRC [2014] UKFTT 915 – 24 September 2014 the FTT found that a payment made on the termination of membership in a healthcare scheme was employment income.

Mr Forsyth contended that the payment was capital; and in the alternative that it was a termination payment so that the first £30 000 was exempt (ITEPA 2003 s 403(1)).

The FTT observed that the...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes: