A hopefully simple question. In a redundancy situation, could the transfer of assets be treated as falling within the £30k Ex Gratia limit?
The assets are second hand laptops, and there are no other Ex Gratia elements in contemplation, merely taxed PILON, taxed holiday pay and Stat redundancy,
I appreciate the laptops have little value, but the company just wants to make sure there are no tax issues left over, for the company or former employees.
Many thanks.
Replies (7)
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What does the transfer have to do with it?
If an employee buys assets from the company at market value isn't that a separate transaction?
Yes
S.401 and its £30K threshold applies to all payments and benefits received in connection with the termination of the employment.
Not a problem
If somebody gets paid £20k and given goods worth £5k then their redundancy is £25k.