For detailed commentary in respect of the definition of foreign service and how the relief is calculated, see E4.802DA.
Foreign service relief on termination payments has been removed for UK residents from 6 April 2018. Employees whose employment terminated on, or after, 6 April 2018 and who receive a payment or benefit in connection with that termination after 13 September 2017 are not be eligible for tax relief in respect of any period of foreign service undertaken as part of their office or employment if they are UK resident for the tax year in which their employment is terminated1. Seafarers remain eligible for foreign service relief (see E4.802DA for detailed commentary).
Interaction with post-employment notice pay
From 2018/19, 'termination awards' are split into two elements2:
- Ìý
•ÌýÌýÌýÌý termination awards not benefiting from the £30,000 threshold and treated as general earnings subject to tax and NIC3
- Ìý
•ÌýÌýÌýÌý termination awards subject to ITEPA 2003, s 4034
Post-employment notice pay
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Web page updated on 17 Mar 2025 17:46