Husband and wife team in a large house of a large country estate (which eventually sold for in the region of £28,000,000). Following the death of the owner the property eventually sold approx two years later. During the period from death to sale both were retained, as were the housekeeper and gardening staff etc. Although contracts have not been seen, the entries on the March payslips were marked as Gratuities and fully taxed, including at higher rate. Both sums were the equivalent of one years salary. I will be grateful if readers can advise whether the first £30,000 of the butler's payment and the full amount paid to his wife could be exempt and should have been outside the scope of tax. Neither were employed by the purchaser who did not require their services. My inclination is to advise that the Contracts of Employment be found and taken for advice to a solicitor familiar with this type of situation.
07th Dec 2017 17:43
Are Termination payments to a butler/cook taxable?
Additional sums of £40653 and £27900 were included in month 12 2016/17. Employment ceased on 23.5.17
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