A. The tax treatment will depend upon the precise nature of the payment. It is possible the payment is in return for entering into some form of restrictive covenant intended to limit his future conduct or activities, in which case the payment will be earnings from the employment. Alternatively, the payment might be in settlement of legal claims being brought or about to be brought by your client against the employer, for example, in connection with employment law, in which case the payment might escape being classed as earnings. You will need to see the documentation in order to determine the precise nature of the payment.
If you have a tax query, why not contact the Tax Advice Line on 0844 892 2470 to discuss it. Our team of experts have a wealth of experience and can also provide a written consultancy service at £180 per hour plus VAT.
Book your place at our Land & Property Seminars:
