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Tax on leaving gift

Employee was given a computer by the employer on leaving (voluntary resignation).

Is there any reason why this would not be taxable (would be done through PSA)?
Paul Wakefield


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By frauke
10th Jun 2008 13:18

"Employment income: gifts not taxable as earnings"
Take a look at the details of EIM01460

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10th Jun 2008 13:02

Long service award?
Is the only possible reason I can think of and here is a link

Unless there was a claim to expenses which were "paid" in terms of the computer?

PS Have we "met" on another site regarding whether to have a motorcycle in or out of a Ltd Coy? ;-)

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10th Jun 2008 16:34

Thanks for that. Long Service award not an option.

Nigel - we have indeed. And yet again you bail me out! I must stop using my real name. :-) Have to say I'd rather be riding.

Frauke - Interesting. In reality it probaby was personal esteem or appreciation. Though the company paid, it was very much in the gift of the director who (rightly) had a high regard for the employee as a person. How do you demostrate it is the next question - I suppose the only option is to get the director to document what her thoughts were at the time.


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11th Jun 2008 17:14

£30k limit
I wasn't certain that this fell within the £30k exemption (the limit itself is not an issue, there were no other payments on termination). Can the £30k limit be applied to such a gift?

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