Termination payments

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Brexit: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has...
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Produced in partnership with Gary Barnett and Martin Shah 27th Oct
Practice notes
A damages or compensation payment may attract VAT. This depends on exactly what the payment is for. If it is purely compensatory, it will be outside...
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13th Oct
Practice notes
Where a dispute is brought to an end by a payment of damages or compensation, whether under a court order or an out-of-court settlement agreement:•the...
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12th Oct
Practice notes
It is market practice for a tax covenant, also known as a tax deed, to form part of the transaction documents in respect of a sale of all the shares...
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28th Sep
Practice notes
The Enterprise Investment Scheme (EIS) is designed to encourage investment in smaller, higher-risk trading companies by offering a range of tax...
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27th Sep
Practice notes
FORTHCOMING CHANGE: HMRC is consulting (13 July to 10 August 2020) on draft regulations to provide a deduction from a UK entity’s equity and...
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Produced in partnership with Charlotte Sallabank of Katten Muchin Rosenman UK LLP 26th Sep
Practice notes
The reasons why a company might carry out a demerger, and the different ways in which a demerger may be structured, are described in Practice Notes:...
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26th Sep
Practice notes
Coronavirus (COVID-19): HMRC has stated in its International Manual that if a financial institution cannot meet the FATCA reporting deadline of 31 May...
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26th Sep
Practice notes
This Practice Note explains:•what a determination in respect of direct tax (ie a direct tax determination) is•when HMRC might issue a direct tax...
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Produced in partnership with Philip Rutherford 26th Sep
Practice notes
Unilateral relief, like double tax relief, aims to relieve double taxation. Subject to certain conditions being satisfied and specific limits,...
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25th Sep
Practice notes
The regime for property authorised investment funds (PAIFs, or as HMRC use in regulations and their published guidance, Property AIFs)) was introduced...
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Produced in partnership with Martin Shah 25th Sep
Practice notes
It is standard market practice for loan agreements (also known as facility agreements), whether bilateral or syndicated, to:•prohibit a borrower from...
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25th Sep
Practice notes
This Practice Note is about the meaning of a scheme of reconstruction for tax purposes.Tax neutrality is maintained where a company (company A) enters...
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25th Sep
Practice notes
Overdrafts, term loans and revolving credit facilitiesThree common types of loan facility are:•overdrafts•term loans, and•revolving credit facilities...
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25th Sep
Practice notes
Plant and machinery allowances are the most widely used form of capital allowance. Plant and machinery is often (wrongly) interpreted as if the terms...
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25th Sep
Practice notes
This Practice Note describes the law and practice relating to elections under section 198 or 199 of the Capital Allowances Act 2001 (CAA 2001), which...
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25th Sep

Most recent Termination payments content

Practice notes
Where an employee has potential claims against the employer under the Employment Rights Act 1996 (ERA 1996) or other employment legislation, or where...
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Produced in partnership with Sam Whitaker of Shearman & Sterling 25th Sep
Practice notes
ARCHIVED: This Archived Practice Note outlines the pre-6 April 2018 tax treatment of payments in lieu of notice. For the tax treatment applicable to...
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26th Sep
Precedents
FORTHCOMING CHANGE relating to PENP: From 6 April 2021, an alternative PENP calculation will be available for employees paid by equal monthly...
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26th Sep
Practice notes
Restrictive covenants or undertakingsThese are undertakings given by employees during employment or on termination which restrict their conduct or...
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26th Sep
Practice notes
Redundancy is one of five ways in which an employment contract may be terminated unilaterally by an employer where such termination will be...
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26th Sep
Practice notes
The foreign service exemption is, broadly, an exemption from income tax which applies to termination payments where:• the employee worked all or part...
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26th Sep
Practice notes
Some payments made on the termination of an employment or office can be paid tax free. Some of these exemptions are often overlooked in practice. The...
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Produced in partnership with Sam Whitaker of Shearman & Sterling 26th Sep
Practice notes
Coronavirus (COVID-19) and TUPE transfers: it has been confirmed that the Coronavirus Job Retention Scheme (CJRS), which provides support to employers...
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26th Sep
Practice notes
Depending on the circumstances, a payment made or other benefit provided in connection with the termination of an office or employment may be taxable...
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Produced in partnership with Sam Whitaker of Shearman & Sterling 28th Sep
Q&As
Employees are required to have income tax and employee National Insurance contributions (NICs) deducted from their general earnings, at source, before...
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28th Sep
Q&As
Where a compensatory payment for loss of office or employment is made in circumstances where:•the payment is not taxable as:◦earnings under section 62...
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28th Sep
Q&As
It is important to note that the position of a person whose employment was terminated without notice (and without being entitled to notice), such as...
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28th Sep
Q&As
The changes to the taxation of termination payments are to be introduced into Chapter 3 of Part 6 of the Income Tax (Earnings and Pensions) Act 2003...
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28th Sep
Q&As
The taxation of termination payments underwent a substantial reform earlier this year, with changes to the legislative provisions taking effect from 6...
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28th Sep
Q&As
First, the extension of the (employee and employer) Class 1 National Insurance contributions (NICs) charge to all PILONs, whether contractual or...
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28th Sep
Q&As
When considering a payment detailed under a settlement agreement, there are numerous potential income tax charging provisions. These include:•section...
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29th Sep
Q&As
Where an employee has potential claims against the employer under the Employment Rights Act 1996 (or other employment legislation, or where the...
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29th Sep

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