Walker v Adams

Sp C May 2003 [Sp C 344]

An individual received a compensation payment for loss of office on the grounds of constructive dismissal based on racial discrimination. Part of the payment related to compensation for “injury to feelings”. The taxpayer claimed that a payment awarded by a tribunal should not be taxable.

It was held that the payment for compensation for loss of office was taxable under ITEPA 2003, s401 but that the payment for “injury to feelings” was not taxable.