Income tax payable on severance pay

koshka · Postby **koshka** » Fri May 09, 2008 5:52 am

I am taking early retirement from my company after 35 years service
12 years I worked for my company outside of the UK
Do I get any additional tax benefit on my severance pay on top of the first Â£30,000?
thanks
chris

Simon Sweetman · Postby **Simon Sweetman** » Fri May 09, 2008 6:24 am

No. The Â£30,000 is the limit of what can be received tax free.

The Ivy Office Ltd · Postby **The Ivy Office Ltd** » Fri May 09, 2008 8:00 am

chris

I think you do and are entiltled to a deduction for the foreign service element

email the figures

regards

dennis@taxesclear.co.uk

tax me less! · Postby **tax me less!** » Fri May 09, 2008 2:03 pm

You should take professional advice this because as Dennis says you get to claim foreign service relief as well.

taxattack · Postby **taxattack** » Sun May 11, 2008 11:55 pm

The foreign service rules are complex - you can find them here, and adjacent pages: http://www.hmrc.gov.uk/manuals/eimanual/eim13690.htm
Unless the last 10 years of your employment were abroad, in which case there may be full exemption, there may be a deduction for the proportion of total service spent abroad.
Regards
chris @ taxattack.co.uk