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Expert Lu
Expert Lu, Business Consultant
Category: Tax
Satisfied Customers: 375
Experience:  ACCA Diploma
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I have a question in relation to a lump sum for

Customer Question

I have a question in relation to a lump sum for compensation
JA: Have you talked to a tax professional about this?
Customer: no
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: no
Submitted: 9 days ago.
Category: Tax
Customer: replied 9 days ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer: replied 9 days ago.
Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 9 days ago.
A former employer has forgotten to contribute to my french pension fund in france from 2000 to 2006. We reach an agreement and it will pay me a lump sum of 120 000 GBP as compensation for any loss or any loss to be incurred as a result of the absence of contributions to the French basic pension scheme. I am a uk resident for tax purposes. My question is what should be the tax treatment of this lump sump (NI? tax on revenue? Capital Gain tax? Others). thank you for your answer.
Expert:  Expert Lu replied 9 days ago.
Hello and Welcome.
I am an expert with JustAnswer and I am happy to assist you with your question
I am currently reviewing your question and I will get back to you.
Thank you in advance .
Expert:  Expert Lu replied 9 days ago.

Hello and thank you very much for your patience after reviewing your question  25 % of this lumpsum is tax free.

Expert:  Expert Lu replied 9 days ago.

The remaining 75%  is taxed as income at you maginal rate of tax.

Please kindly feel free to ask if you need me to clarify my answer.

All the best .

Expert lu.

Customer: replied 9 days ago.
Any national insurance on the 75 percent?
Expert:  Expert Lu replied 8 days ago.

Hello and thank you very much for your patience there will not be any national insurance on this .

Expert:  Expert Lu replied 8 days ago.

I hope that you are answered and that everything is clear. Please kindly feel free to ask if you still need my assistance.  I will be more than happy to assist you.

All the best.

Expert Lu.