This case concerned the taxation of two substantial gifts made to former employees: were the gifts taxable under ITEPA 2003, s. 62? The company argued that the gifts were not payments in return for acting as or being employees, but the FTT did not agree (Gain Capital Ltd v HMRC  UKFTT 61 (TC)).
The two individuals both entered into call option agreements after each had in turn resigned as director.
The FTT had a PDF bundle of 783 pages but still faced a “lacuna in the evidence”. Nevertheless, the tribunal was able to conclude that “the shares awarded under the deferred share plans were awarded as part of [the] reward for services”. Furthermore, earlier case law had shown that “in identifying ‘profit’ in s62 ITEPA the full amount received by the employee is taken into account and it is only amounts which fall within specific deductions within the code which are then deducted”.
As such, the full amounts of the gifts received were taxable.