EIM13650 - Termination payments and benefits: Section 401 ITEPA 2003: exceptions: payments on account of injury or disability: interaction with capital gains tax
Section 406(b) ITEPA 2003
A taxpayer who claims exception on disability grounds in respect of a termination payment within Section 401 ITEPA 2003 may claim ill-health retirement relief for capital gains tax purposes until 2002/03.
This could happen, for example, if an individual who is a full time working officer or employee of his or her personal company retires early on ill-health grounds and at the same time sells shares in the company.
The capital gains tax claim is referred to the HMRC바카라 사이트™s Medical Adviser (see CG63400+). If the taxpayer바카라 사이트™s claim to that relief is accepted you may also accept that the payment qualifies for exception from a Section 401 ITEPA 2003 charge under EIM13610.