Section 310 ITEPA 2003

Payments for outplacement counselling that meet certain conditions are exempt from income tax.

When an office or employment is terminated, the employer may pay for the employee to receive professional advice and assistance designed to help the employee cope with the situation and find a new job. Such professional advice is known as outplacement counselling and may consist of anything from a single advisory interview to ongoing assistance for a period of several months. It has become a common feature of termination packages offered by employers, particularly where redundancy is involved.

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