Whether or not the payment is taxable depends on how much you receive and what the payment is for. Certain expenses incurred on moving such as paying the fees connected with house purchase and the costs of moving household furniture and effects will not be chargeable to Tax or National Insurance up to a limit of £8,000.
However, there are some expenses which are not covered by this exemption, and paying compensation for any loss incurred on selling the home quickly, or cost in redirecting the mail are examples of these.
There are other various criteria to be met for this exemption to apply, and it would therefore be advisable to take further advice from your local TaxAssist Accountant before accepting the offer.
By Jo Nockels
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