Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will undertake a review of the tax exemption limit for cash redundancy payments; and if he will make a statement.

The Government confirmed in Finance (No. 2) Act 2017 that the first £30,000 of all termination payments remain exempt from income tax.

The UK has one of the most generous tax exemptions for termination payments in the OECD, and around 80% of the termination awards made each year will remain completely free from income tax. The £30,000 threshold also exceeds the maximum statutory redundancy payment of £15,750.

The Government has no plans to change the termination payments tax exempt threshold.