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Home Office: Redundancy Pay

Asked by Mike WoodConservativeCabinet OfficeTabled Answered 3 March 2026UIN 114873

The question

To ask the Minister for the Cabinet Office, pursuant to the answer of 8 September 2025 to Question 73331 on Home Office: Redundancy Pay, whether severance payments made to departing special advisers are subject to the £30,000 tax-free allowance.

Answered by Satvir Kaur

Under HMRC rules, severance payments for special advisers are taxable as earnings because they are a contractual entitlement.

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