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moving place of work

Hi, ,my husband has been told that his firm will be moving his place of work and as a result they will pay him a £5K displacement fee. Can anyone tell me whether this is subject to tax? We will not be moving house but if he has to pay tax and then buy a van (required for the type of work) he will then have to pay VAT on top of that. Is that right?
Many thanks in advance.

Ali
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