Even if a lump sum payment is not made under a legal obligation,
it is taxable as earnings within Section 62 ITEPA 2003 if it is
customary within a particular employment for such payments to be
made to a particular class of employee.
The case of Corbett v Duff (23TC763)(see example EIM00645) illustrates this principle.
This principle will not usually apply where a director of a family company retires and receives a lump sum. Such payments need to be considered under EIM02100 and EIM13000 onwards, see also EIM15000 onwards.