Tax Relief On Settlement Agreements

It is customary for a settlement agreement to be concluded shortly before or after the termination of an employee`s employment contract. These agreements are sometimes used when redundancies are made, but they can be used in a number of situations. If you are negotiating a transaction agreement with your employer, it is important to understand the tax rules that apply to each payment you may receive. It should be noted that the £30,000 tax exemption is a sum of all these payments relating to this employment. If you received a payment from a previous transaction agreement, it can be taken into account at the same limit. If you add all payments, you must include all payments from the same job.

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