Alasdair Friend (Abbiss Cadres) explains the practical effect of changes made by Finance (No. 2) Act 2017.
Finance (No. 2) Act 2017 enacted a number of changes to the taxation of termination payments which will apply where an employment terminates on or after 6 April 2018. These cover three areas:
an extension to the amount of a termination payment which is treated as taxable earnings to cover ‘notice pay’;
power for the Treasury to vary the £30 000 tax-free threshold by regulation; and
a limitation on the scope of the type of ‘injury’ for which a termination payment can be paid entirely tax free.
Further changes to the taxation of termination payments are also in prospect:
The abolition of foreign service relief will be enacted by the Finance Bill 2018 effective from April 2018.
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Alasdair Friend (Abbiss Cadres) explains the practical effect of changes made by Finance (No. 2) Act 2017.
Finance (No. 2) Act 2017 enacted a number of changes to the taxation of termination payments which will apply where an employment terminates on or after 6 April 2018. These cover three areas:
an extension to the amount of a termination payment which is treated as taxable earnings to cover ‘notice pay’;
power for the Treasury to vary the £30 000 tax-free threshold by regulation; and
a limitation on the scope of the type of ‘injury’ for which a termination payment can be paid entirely tax free.
Further changes to the taxation of termination payments are also in prospect:
The abolition of foreign service relief will be enacted by the Finance Bill 2018 effective from April 2018.
...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
