A payment to an employee from their former employer in settlement of Employment Tribunal proceedings and claims relating to the taxpayer’s prior employment and its termination was indirectly in consequence of, or otherwise in connection with the termination.

On 30 April 2015, the appellant’s employment was terminated by her employer (DBGS), a company in a group headed by Deutsche Bank AG (the bank). The appellant had been continuously employed by the employer for nearly seven years (since July 2008) and was a managing director in a division of the bank.