Taxation of compensation for threatened race discrimination claim
The First-Tier Tribunal has held in A v Commissioners for HM Revenue & Customs that a payment of £600,000 to a trader when he left his employer, a Bank, was compensation in respect of his threatened race discrimination claim.
As such, it could not be considered to be earnings under section 62 Income Tax (Earnings and Pensions) Act 2003 and should be treated as damages.
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