On Friday, Sir Geoffrey Vos and judge Tim Herrington concluded that the appeal against holding company for Tottenham Hotspur football club should be dismissed.
The appeal came after the First-Tier Tribunal (FTT) decided in June 2016 that termination payments paid to players for the club were neither taxable as earnings, nor subject to NICs.
The original complaint questioned whether large payments to Wilson Palacios and Peter Crouch upon the early termination of their contracts through transfer, could be considered as “earning from employment”, which would make the first £30,000 taxable.
Ultimately, the UT supported the FTTs decision that the payments were not subject to tax.
An HMRC spokesperson said that the Revenue believed it had applied the correct tax treatment to the payments and was pursuing its appeal of the First-tier Tribunal’s decision.