Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

New queries, issue 4212

30 June 2009
Issue: 4212 / Categories: Forum & Feedback
Redundancy payment from EC resident company; company account held in director’s name; golden hello to partner; funding commercial property

Redundancy doubts

We have recently started to act on behalf of a new client who is resident ordinarily resident and domiciled in the UK.

He has been employed by a company resident in a European Community country for about nine months and he has done most of the work at home with occasional visits to the company which does not have a UK base or group member.

The world economic downturn has meant that our client has been made redundant and is being paid redundancy of £20 000.

We would like to report the payment as tax free being under the £30 000 threshold and all the normal conditions appear to be satisfied.

However we cannot find any guidance that actually covers the payment of the redundancy from an EC company (or non-UK company) and wondered whether we can be certain that the £30 000 rule...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon