United Kingdom Upper Tribunal (Tax and Chancery Chamber)

Revenue and Customs v Tottenham Hotspur Limited (INCOME TAX ) [2017] UKUT 453 (TCC) (24 November 2017)

INCOME TAX - termination payments made to football player employees - whether taxable as earnings "from an employment" under sections 9(2) and 62 of the Income Tax (Earnings and Pensions) Act 2003 - whether subject to national insurance contributions under section 6 of the Social Security Contributions and Benefits Act 1992 - whether the FTT was right to hold that the distinction was between "receipt of remuneration or profits in respect of office" (taxable under section 9(2)), and "sums paid in consideration of the surrender by the recipient of rights in respect of the office" (not so taxable) - that distinction upheld and described as being between cases where the entire contract of employment is abrogated in exchange for the termination payment (as in Henley v. Murray [1950] 1 All ER 908), and cases where the payment is made in pursuance of a pre-existing obligation to make such a payment arising under a contract of employment.

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