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Markel Tax

23 Nov 2017

Autumn Budget 2017: Reform of tax treatment of termination payments foreign service relief

It was announced at Budget 2016 and confirmed in the Spring Budget 2017 that employees who are resident in the UK in the tax year in which their employment is terminated will no longer be eligible for foreign service relief on termination payments.

Draft legislation was published on 13 September 2017 and, following consultation, the legislation remains unchanged. The changes will have effect from 6 April 2018 and apply to any person whose employment contract is terminated on or after that date.

This will affect any employees with overseas service who receive a termination payment relating to the cessation of their employment on or after 6 April 2018. Such payments will now be fully liable to UK tax.

Tagged London Specialist Tax Consultancy
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23 Nov 2017

Autumn Budget 2017: Removal of indexation allowances for limited companies