EIM13505 - Termination payments and benefits: section 401 ITEPA 2003: £30,000 threshold: general

Sections 403 to 404 ITEPA 2003

With effect from 6 April 2018, an element of all payments received in connection with the termination of a person바카라 사이트™s office, or employment are chargeable to income tax as general earnings. EIM13874 defines the term 바카라 사이트˜relevant termination awards바카라 사이트™ and explains that relevant termination awards are split into 2 elements:

  • post-employment notice pay (PENP)
  • termination awards subject to section 403 ITEPA 2003

Section 403(1) ITEPA 2003 provides that payments, and benefits that fall within section 401(1)(b) and (c) ITEPA 2003 and 바카라 사이트˜termination awards subject to section 403 ITEPA 2003바카라 사이트™ count as employment income (see EIM00510) only to the extent that they exceed £30,000. The £30,000 figure is described as a threshold. This threshold does not apply to post-employment notice pay.

Prior to 6 April 2018 all payments and benefits within section 401(1) ITEPA 2003 were subject to section 403(1) ITEPA 2003 and the £30,000 threshold.

Some payments and benefits must be added together before applying the threshold, producing an aggregate. EIM13530 explains when this must be done.