What are golden handshakes?
jon
April 01, 2010
advice, Business, employee, Employment, golden handshake, HM Revenue and Customs, HMRC, leaving, lump sum, PILON, professional, taxation, termination
2 Comments
Golden handshakes are payments to an individual upon termination of employment and may also be known as lump sum payments.There are cases where such payments are not taxed at all, which are those post-death when an employee has died in service, and in some cases payments due to disability may qualify for exemption. Those are outside the norm.For the most part termination payments are taxable under special rules. The first £30,000 of a leaving payment will be exempt from tax if it is an ex-gratia payment and therefore non-contractual. One may have to make the case … Continue Reading
