Question asked:


Hi Alan,
Our client, an Irish citizen, has been tax resident in the UK for a number of years. His Irish based limited trading company, of which he has been a director for 11 years,is winding down and will be liquidated shortly.
1 Can the company give a tax free termination of employment payment to our client, even though he is currently non resident for tax purposes?
2 If so, what would the tax treatment of this be in the UK? Would it be tax exempt in the UK because it tax free in Ireland?
Thank you
Tony Fitzgerald

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Posted by (Questions: 84, Answers: 7)
Asked on 20 September 2016 12:42 pm
Private answer

1. Yes
2. He will be taxable in the Uk with a credit for any Irish tax paid. The UK taxation of termination payments are not as favourable as ours. In general only £30,000 sterling can be taken tax free, but you would need UK advice in relation to same.

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Posted by (Questions: 16, Answers: 685)
Answered on 24 September 2016 7:37 pm