Bonus scheme payments received by an individual under a compromise agreement with his former employer were taxable as general earnings and were not termination payments for tax purposes.
The Appellant was employed by a large international bank between November 2010 and July 2012, when the employment was terminated by mutual agreement.â¯The appellant received guaranteed bonus payments under a compromise agreement with his employer. He treated the bonus payments as termination payments for tax purposes.
Following an enquiry into the appellant’s self-assessment return for the tax year 2014/15, HM Revenue and Customs (HMRC) issued closure notices for 2014/15, 2015/16 and 2016/17. The appellant appealed. His main contention was that the bonus payments received under the compromise agreement were termination payments within
