Transfer of assets - Ex Gratia

Transfer of assets - Ex Gratia

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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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By petersaxton
04th Oct 2012 06:18

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?

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By tom123
04th Oct 2012 09:39

Probably poor question drafting on my part.

Morning Peter

That was probably poor question writing on my part.

What is really planned is that people being made redundant receive all their usual entitlements together with the 'gift' of being able to keep the laptop they have been using over the years.

Thanks

 

Tom

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By Steve Kesby
04th Oct 2012 10:13

Yes

S.401 and its £30K threshold applies to all payments and benefits received in connection with the termination of the employment.

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By petersaxton
04th Oct 2012 10:41

Not a problem

If somebody gets paid £20k and given goods worth £5k then their redundancy is £25k.

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By tom123
04th Oct 2012 11:47

Thanks all for the confirmations,

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By timbops
04th Oct 2012 12:08

What about VAT?

Would not VAT have to be accounted for on the 'worth' of the laptops?

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By petersaxton
04th Oct 2012 14:40

VAT

It would if the business was VAT registered.

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