Questions and Answers
Relocation package for an employee
My employer has recently opened a new office in another part of the country, and wants me to manage the office. They have offered me a relocation package to move my family to the area but can advise whether this payment is taxable?
Whether or not the payment is taxable depends on how much you receive and what the payment is for. Certain expenses incurred on moving such as paying the fees connected with house purchase and the costs of moving household furniture and effects will not be chargeable to Tax or National Insurance up to a limit of £8,000.
However, there are some expenses which are not covered by this exemption, and paying compensation for any loss incurred on selling the home quickly, or cost in redirecting the mail are examples of these.
There are other various criteria to be met for this exemption to apply, and it would therefore be advisable to take further advice from your local TaxAssist Accountant before accepting the offer.
Date published 5 Dec 2012
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
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