2 articles tagged with ex Gratia Payment Tax.
A genuine ex-gratia payment on leaving a job can be received tax-free up to £30,000, on top of statutory redundancy pay, but only if it is truly not contractual or connected to services rendered. Here is the 2026/27 tax treatment.
A settlement agreement often bundles several different payment types together — notice pay, redundancy compensation, unused holiday, sometimes a genuine ex-gratia sum — and each is taxed completely differently. Here's how to read the breakdown.