Golden handshakes

Produced by Tolley in association with Paul Tew

The following Employment Tax guidance note Produced by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:

  • Golden handshakes
  • Introduction
  • Golden handshakes
  • Non-compensatory payments
  • Compensation for loss of office

Golden handshakes

Introduction

Golden handshakes is a term used to describe certain payments to employees. Specifically, it is a term that is used for a payment on termination of the employment. The tax treatment of the payment will depend on the underlying reason for the payment to the employee. There is no statutory definition of what constitutes a golden handshake payment and indeed the term is increasingly not used when making a payment to an employee upon leaving the employment.

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