Are Settlement Agreements Taxable?
A settlement agreement payment (lump sum) under £30,000 is not taxable. Payments under £30,000 are not taxable providing they do not include other contractual payments. A settlement agreement payment may be referred to as “compensation payment”, “ex-gratia payment” or “termination payment”. Payments can be classed as statutory or contractual. The difference between contractual and statutory employment rights Contractual rights … Read more