Krishna Moorthy v HMRC

Cathya Djanogly

In Krishna Moorthy v HMRC ([2014] UKFTT 834 – 21 August 2014) the FTT found that a payment had been made to an employee in connection with the termination of his employment.

Mr Moorthy had been made redundant and had received £200 000 under a compromise agreement. He contended that this amount was not taxable as it had been paid to settle a discrimination claim to compensate him for not being selected for a post and to protect his employer’s reputation.

The FTT observed that ITEPA s 401 which brings into charge a payment ‘directly or indirectly in consideration or in consequence of or otherwise in connection with the termination of a person’s employment’ is widely drawn.

The FTT found that the alleged discrimination unfair dismissal and ‘injury to feelings’ were all connected to the redundancy which had come as a ‘shock’ to Mr...

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In Krishna Moorthy v HMRC ([2014] UKFTT 834 – 21 August 2014) the FTT found that a payment had been made to an employee in connection with the termination of his employment.

The FTT found that the alleged discrimination unfair dismissal and ‘injury to feelings’ were all connected to the redundancy which had come as a ‘shock’ to Mr...

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: