The Office of Tax Simplification is consulting over simplifying the current £30,000 tax-free rules for termination payments.
A copy of the consultation paper, dated 24 July 2015, can be found here comments are requested by 16 October 2015.
A number of proposals are being considered, including the following:
We welcome simplification of the current regime (which, in our view, focusses too much on the contractual/non-contractual distinction as a legal technicality) and we suspect HMRC will want to simplify it too. However the trade off will, inevitably, be to lower the tax-free threshold from £30,000 so that overall tax revenue doesn’t suffer.