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.

Documents

Draft legislation: termination payments

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Details

This measure removes foreign service relief, but introduces a residency test to ensure it only affects those who are UK resident in the tax year their employment is terminated.

Update

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

Published 13 September 2017