Voluntary exit - tax situation for non residents

I’m currently on a career break from the UK civil service and am non resident for tax purposes in the UK. I have been offered a voluntary exit package by my department. What will the tax treatment of that be for me as a non resident?

Hi,
It dpends on which county you live in. for most, government income remains liable in the UK.
Please refer to:
Tax treaties to select the country you need
Thank you

Thanks - I’m in Botswana, where there is a double taxation agreement. Please confirm whether a voluntary departure payment would be classed as ‘salaries, wages and other similar remuneration’. There would be no ‘services rendered’ as it’s a compensation payment than a salary… If this would be taxed in the UK, given I have no other income am I right in assuming that the basic tax rate (20% after personal allowance) would apply? Thanks

Hi,
We cannot advise of the tax implications of a particular transaction that has not actually occurred yet as that would be effectively giving tax advice. You can see guidance on gifts here: CG12920 - Gifts and Capital Gains Tax: introduction
Unless it is a situation where the no gain/no loss rules apply, which does not appear to be so here, then gifts are treated as taking place at market value and any computations for capital gains on the gift are made on that basis for the disposal value. That disposal value would then be the cost in the hands of the recipient of the gift. The guidance also covers reliefs available where an asset is gifted, including Hold-Over relief. Guidance on hold-over relief can be seen here: 
CG66880 - Reliefs: Gifts and Capital Gains Tax: Relief for Gifts of Business Assets
There is also the helpsheet HS295, which includes a link to the claim form, here:
HS295 Relief for gifts and similar transactions (2024) 
The guidance below covers what are qualifying business assets:
CG66884 - Relief for Gifts of Business Assets: Qualifying Assets
The criteria are set out for what constitutes a business asset that qualifies for relief under S165 TCGA92 and it is up to you to decide if the asset being gifted meets this criteria according to the particular facts. If the business asset criteria are not met, then relief may be available under the agricultural property rules which may allow relief even where an agricultural property is not used for the trade. Again it would be for you to decide if your asset meets one of the relevant conditions for it to apply.  
You may also wish to seek professional help.
Thank you.
 

Hi SP1976,
Sorry for our incorrect reply sent on the 18 March, please see below your correct response:

Based on the person getting a termination payment from their UK Civil Service employment the payment would be classed as employment income for Double Taxation Agreement purposes - EIM13695 refere
EIM13695 - Foreign service: application of double taxation agreements to termination payments
However, in this case the payment would come under Article 20 as they were in Government service (UK Civil Service)
Assuming that article 20 (1)(b) of the UK/ botswanatax treaty doesn't apply it would potentially be taxable in the UK under Article 20(1)(a) and you would be correct in assuming the payment may be taxed at the usual rates after deducting any Personal Allowance.
We use the phrases "potentially" and "may" because if the payment is Statutory Redundancy the payment may be tax free.
You should speak to your ex-employer's HR section for further advice.
There is also some general guidance here here:
Tax on termination payments
Thank you