Posted by Matthew Hendra, Senior Associate
Making a Settlement Agreement tax efficient
Our client was an employee at a large PLC who resigned a result of discrimination. Following protracted negotiations between ourselves and the Employer, compensation was agreed under a settlement agreement.
Using our extensive experience, we successfully argued that, because of the nature of our client’s claim, the compensation was in large part attributable to discrimination which occurred before her resignation.
We therefore re-structured the agreement and drafted a number of amendments so that all compensation apportioned to discrimination was correctly paid tax-free.
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