Termination payments

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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 12th Jan
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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9th Nov
Practice notes
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 Martin Shah and Gary Barnett of Simmons & Simmons LLP 12th Jan
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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9th Nov
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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Produced in partnership with Zoe Feller of Bird & Bird 12th Jan
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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Produced in partnership with Eloise Walker of Pinsent Masons 12th Jan
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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Produced in partnership with Ali Kazimi and Chris Orchard of Hansuke Consulting Limited 12th Jan
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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9th Nov
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 12th Jan
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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9th Nov
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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9th Nov
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 of Simmons & Simmons LLP based on material originally written by Charles Goddard of Rosetta Tax LLP 12th Jan
Practice notes
The value shifting rules are anti-avoidance provisions. They are similar to the rules applying to depreciatory transactions in that they target the...
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9th Nov
Precedents
1 Withholding and grossing up 1.1 All sums payable under this [Agreement] by or on behalf of any party (for the...
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9th Nov
Practice notes
A management buyout, or MBO, involves the acquisition of a business by its existing management team usually with the help of private equity financing....
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9th Nov
Practice notes
This Practice Note:•explains:◦the purpose of the tax indemnity clause that is normally found in a loan agreement, and◦that the standard drafting of...
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9th Nov

Most recent Termination payments content

Practice notes
Coronavirus (COVID-19) and TUPE transfers: the Coronavirus Job Retention Scheme (CJRS), which provides support to employers with a grant to enable...
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20th Jan
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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Produced in partnership with Sam Whitaker of Shearman & Sterling 15th Jan
Practice notes
The taxation of termination payments underwent a substantial reform in 2018. Consequently, since 6 April 2018, the tax (and National Insurance...
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Produced in partnership with Sam Whitaker of Shearman & Sterling 15th Jan
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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Produced in partnership with Lesley Fidler and David Heaton of Baker Tilly for Tolley’s Tax Digest and Sam Whitaker of Shearman & Sterling LLP 15th Jan
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 15th Jan
Practice notes
The first question in respect of any termination payment or benefit is whether it is taxable on basic principles as earnings from or an emolument of...
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Produced in partnership with Sam Whitaker of Shearman & Sterling 15th Jan
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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Produced in partnership with Sam Whitaker of Shearman & Sterling 15th Jan
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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Produced in partnership with Sam Whitaker of Shearman & Sterling 8th Jan
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 8th Jan
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 8th Jan
Practice notes
The tax treatment of payments in lieu of notice (PILONs) fundamentally changed under the amendments to sections 402 to 404 of the Income Tax (Earnings...
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Produced in partnership with Sam Whitaker of Shearman & Sterling 8th Jan
Precedents
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s...
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23rd Dec
Precedents
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s...
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23rd Dec
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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5th Dec
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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5th Dec
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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5th Dec

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