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Tax Liability for Compensation Payment v Redundancy Payment
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njbhorn
Posts: 25 Forumite
I have been offered what appears to be a generous Compensation Payment aka Compromise Agreement in lieu of taking redundancy.
It's an "ex-gratia sum by way of compensation for loss of office and employment" = compensation payment
What is the tax implication of one versus the other? Or are they considered to be the same i.e. Redundancy payment is tax free for first £30k?
Many thanks for any help here.
Nigel
It's an "ex-gratia sum by way of compensation for loss of office and employment" = compensation payment
What is the tax implication of one versus the other? Or are they considered to be the same i.e. Redundancy payment is tax free for first £30k?
Many thanks for any help here.
Nigel
0
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