Posted by Gemma Ospedale, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
Injury to feelings award not taxable
In Timothy James Consulting Limited v Wilton, the EAT considered the authorities both in respect of tax and employment on the taxation of injury to feelings awards. It gave its considered view that these awards are not taxable, albeit this decision is not binding on HMRC and is in conflict with the latest tax case to consider the issue. The case concerned a constructive unfair dismissal claim – the EAT held that while the constructive dismissal may be the result of acts of harassment towards the individual, the constructive dismissal of itself could not be an act of harassment.
This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.
For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.
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