Sections 62 and 401ITEPA 2003

Example 1

A compromise agreement (see EIM12855) states that it settles all claims in respect of the employment or its termination for £35,000. No contractual claims are specified in the agreement.

The contract of employment provides for a terminal bonus of £5,000 to be paid. This bonus has not been dealt with elsewhere.

By its wording, the agreement satisfies that entitlement. £5,000 of the £35,000 is earnings from the employment within section 62 ITEPA 2003 (see EIM00515).

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