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Where Taxpayers and Advisers Meet

Moving Abroad

mickeytake
Posts:2
Joined:Wed Aug 06, 2008 3:49 pm

Postby mickeytake » Thu Feb 08, 2007 9:01 am

I am leaving my current job on fairly generous severance terms. My final day is 31st March but, with annual leave to take, I will be leaving on 5th March 2007 to move abroad on a permanent basis.

Apart from the first £30,000.00 my severance payment will be taxed at the higher 40% rate. I've been told that, because I will be emigrating permanently before the end of this tax year, I may be able to reclaim some or all of the tax paid on my severance payment - which would be very helpful to me in establishing my new overseas business. I would be very grateful if someone could clarify whether this is true and, if so, how might I go about it.

All replies gratefully received

Bob Jones
Posts:268
Joined:Wed Aug 06, 2008 3:43 pm

Postby Bob Jones » Thu Feb 08, 2007 3:33 pm

A person who emigrates to live abroad permanently may be entitled to a repayment of tax because they may not have received their full tax free allowance for the year. This has nothing to do with receiving a severnace payment - but if your final day is 31 March the likelihood is that you will have received all your allowances and no repayment will be due .....

Bob

mickeytake
Posts:2
Joined:Wed Aug 06, 2008 3:49 pm

Postby mickeytake » Fri Feb 09, 2007 1:55 pm

Thanks Bob

I must confess that that was my understanding also. Good job I'd not built my hopes up ... and an example of making sure that you seek proper advice before making biug decisions like this

Mike


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