§ Mr. Wigley
To ask the Chancellor of the Exchequer if he will issue guidelines to local tax offices on the taxation of payments made to employees by way of compensation for breach of contract, classifying the schedule under which such tax is collected; and if he will make a statement.
§ Mr. Dorrell
Payments of compensation for loss of office are chargeable to income tax under section 148 of the Income and Corporation Taxes Act 1988. Local tax offices have detailed instructions on how to deal with such cases.