Petition · HM Treasury
Increase the £30,000 tax-free limit on settlement agreements
Closed
36 signatures
What the petition asks
The £30,000 tax-free limit on settlement and redundancy payments has not increased since 1988. We think it should be raised to reflect inflation and indexed each year, to ensure fair treatment for workers facing job loss or redundancy.
We ask the Government to:
Increase the tax-free limit from £30,000 to a fair, inflation-adjusted level.
Automatically index the threshold to inflation each year.
We think this change would restore fairness, support people through job loss, and reduce the tax burden on those already under financial and emotional stress.
Increase the tax-free limit from £30,000 to a fair, inflation-adjusted level.
Automatically index the threshold to inflation each year.
We think this change would restore fairness, support people through job loss, and reduce the tax burden on those already under financial and emotional stress.
Timeline
| 14 Nov 2025 | Petition opened for signatures |
| 14 May 2026 | Closed to new signatures |
Key facts
Signatures
36
Status
Closed
Department
HM Treasury
Opened
14 Nov 2025
Closed
14 May 2026
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Source: the official petition page. Last checked 25 Aug 2026.