£30k tax free on termination

An employee (or director) can be paid up to £30,000 on termination provided this payment is not contractual.

There is nothing in the service contract relating to termination payments but the company is being sold and there is a clause in the heads of agreement that the price will be reduced by £30,000 (x number of director/shareholders) in relation to termination payments made to them.

The heads of agreement is not a contact so as long as this does not appear in the purchase and sale agreement I guess it is OK

Any thoughts?

 

 

 

Comments
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Related to duties performed?

Paulsoper |

Agreed

George Attazder |
George Attazder's picture

Good point George

Paulsoper |

.

blok |
blok's picture

Not CGT

George Attazder |
George Attazder's picture

.

blok |
blok's picture