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Ben Jones
Ben Jones, UK Lawyer
Category: UK Employment Law
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hi, would a settlement figure from a compromise agreement be

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hi, would a settlement figure from a compromise agreement be tax deductable?

Ben Jones : Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. What is the settlement for?

hi, its for disability discrimination & unfair dismissal; however the opposite side are basing it on condition that they are not liable as they do not want to pay out further legal fees etc..

Ben Jones :

Unfair dismissal compensation - basic award will be part of the £30k tax free exemption. Compensatory award will also fall within that but any amount (aggregated with the basic award) that goes over the £30k will be taxable.

Discrimination - Any part of the payment that is related to the termination of employment and compensates you for financial loss, will be taxable. If the payment relates to injury to feelings and the discrimination giving rise to the payment is not related to the termination of employment, it can be paid tax free


okay thanks for advise.

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