Constructive Dismissal Award

[davelong]

I have for sometime been in a Legal battle with my previous employer.

I am nearing the end of the case and their is a good chance that I will win.

The award could be as much as £1m though £500,000 is more realistic.

Any amount over £35,000 is subject to TAX (40%).

Hence the question.

How do I avoid Paying out so much Tax?

Does it mean me moving to another country? which Countries can I move to to avoid paying tax?if so for how long? how often can I visit the UK? After what period can I move back to the UK? Can I still own a property in the UK?

Any advise would be much appreciated.

Please remember this is a tentative enquiry, based on the fact that no decision regarding the case has been made yet. Though I am only weeks away from getting a decision.

Thank you

[Ian McTernan CTA]

Not too hot on constructive dismissal awards, but the short answer as I understand it is you cannot avoid paying the tax if the court rules it is taxable, no matter where you move to in the meantime. The Revenue will tax the amount as it arises from a claim relating to employment whilst in the UK, and is hence a Uk source.

Regards.

Ian McTernan CTA
McTernan Associates Ltd
ian@imcternan.com