Summary
The element of a payment by a former employer relating to compensation for the loss of expectation of pension rights following a transfer of employment under the TUPE regulations was not an emolument from the employee’s employment. However, other elements of the payment were taxable.
Background
The appellant was employed by a company (BP) for many years. In early 2010, BP informed the appellant and his colleagues that part of its business was going to be transferred to another company (NA). Part of this process was the proposed transfer of employees between the companies, pursuant to the TUPE Regulations (Transfer of Undertakings (Protection of Employment) Regulations 2006).
Virtually all of the relevant employees (including the appellant) agreed to the TUPE transfer. The appellant entered into a compromise agreement with his former
