Tax on Severance - Overseas Service Foreign tax relief?

Stef_1967

I have recently been made redundant/severanced and my settlement contained full deduction of taxes on the amount over the 30K tax free threshold.  My question to anybody in the know and willing to share is am I able to reclaim tax given I have worked 17 of the last 20 years overseas and outwith the UK?  I thought I had read somewhere that I am able to claim Foreign tax relief on the severance payment.  Any help and advise greatly appreciated.

Andy_L

Are you currently UK resident for tax? 
"The foreign service exception and reduction is no longer available where the employee, or former employee is UK resident for the tax year in which the employment is terminated."
https://www.gov.uk/government/publications/termination-payments-removal-of-foreign-service-relief/income-tax-and-national-insurance-contributions-termination-payments-removal-of-foreign-service-relief-for-uk-residents

Stef_1967

Thank you Andy_L for the response.  I am indeed now a UK tax resident and probably why the company returned me to the UK before paying out the severance.  I'll write to HRMC in the off chance they take pity or have a beneficial view

GrumpyDil

HMRC can't take pity. Either you do or don't meet the criteria ( and in your case it looks like don't).