The taxpayer’s claim for foreign service relief in respect of a termination payment was unsuccessful as he was held to be ordinarily resident in the UK during a period relevant to the claim. 

On 1 January 2012, the appellant entered into employment with a firm. The appellant ceased to be employed by the firm on 19 December 2013 pursuant to a compromise agreement following a change in control.  

The appellant received payments amounting to £1,457,823, of which £578,400 was a termination payment (under ITEPA 2003, s 401). Of this termination payment, £30,000 was claimed as exempt under ITEPA 2003, s 403 and £252,923 was claimed as exempt under ITEPA 2003, s 414. The claim for section 414 relief was made in the ‘white space’ of the appellant’s self