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Where Taxpayers and Advisers Meet

Non Resident termination payment

taxbill
Posts:35
Joined:Wed Aug 06, 2008 3:42 pm

Postby taxbill » Tue Jan 29, 2008 8:49 am

Leasing client of mine has worked abroad for over 5 years as a UK non resident employed by a UK company.
He is now leaving the company and will receive a 6 month termination payment. Are there any Uk tax implications.
In other words would the revenue consider this payment as work undertaken wholly outside the uk and not subject to UK tax or not?
Hope someone has come across this before.
Bill

tax me less!
Posts:983
Joined:Wed Aug 06, 2008 3:29 pm

Postby tax me less! » Thu Jan 31, 2008 2:11 pm

Terminatio payments are taxable on a worldwide basis subject however to foreign service relief.

He shoul be directing this point at his solicitor who is handling the compromise agreement.

There may well also be tax or reporting obligation overseas.


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