daccs

Can anyone confirm if a relocation package is taxable in the UK? I've read you can get up to £8k without incurring tax. Can anyone confirm either way?

Thanks

Bob

Where are you relocating to and who is stumping the money?

unique_boy

Mine was taxed in the US... would be interested if I could claim that tax back!

mrlion

Mine was taxed here in CA and the company grossed it up.

daccs

My company is both in the US an UK. So technically I could get it from either side. I'm moving to Georgia

mrlion

Given the dual taxation i don't think it particularly matters where the tax is paid provided you do both tax returns correctly.

unique_boy

Although don't forget to claim your tax back on leaving the uk!

thinbrit

Don't forget to claim that tax back on your US tax return. I claimed the tax back on moving expenses from Blighty, and later from TX to CA and then from CA back to TX.

Tax Topics - Topic 455 Moving Expenses

ubernathan

My relocation package will be taxed in the USA and not UK. It is a payment made once I've transferred. I can claim all the US moving deductibles from that sum. I have to stump up the cash to actually move in advance though. If I had cash flow problems, it would probably be more efficient for the company to employ a moving agent and pay them. Again, that would be US taxable (plus agent fee).