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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Compensation: inducements: employment: introduction

These instructions tell you about situations where a payment made as an inducement to take up, or not to take up, employment, may be chargeable to Capital Gains Tax. These may be described in a number of ways, such as ‘Golden Hellos’, ‘Golden Handshakes’ and so on. In most cases, you will need to consider whether the payment is, in fact, properly chargeable to Income Tax so cannot be charged to Capital Gains Tax, TCGA92/S37 (1). CG68060 tells you more about this.

Signing-on fees paid to amateur players by Rugby League clubs which clearly represent nothing more than compensation for the loss of their amateur status, see SE64160 or EIM64160, are not chargeable to Capital Gains Tax as they are not derived from any asset.