Policy paper

Termination payments: removal of foreign service relief

This measure removes foreign service relief as it applies to the Income Tax applicable to employment termination payments and introduces a residency test.


Draft legislation: termination payments

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This measure applies if you’re UK resident in the tax year your employment is terminated, and:

  • removes foreign service relief
  • introduces a residency test


The introduction of employer NationaI Insurance contributions on termination payments above £30,000 will take effect from 6 April 2019.

Published 13 September 2017
Last updated 6 April 2018 + show all updates
  1. Updated with information about Foreign service relief and Payments in lieu of notice.
  2. First published.