EIM12800 - Termination payments and benefits: table of contents
Termination payments and benefits: introduction
Introduction: finding the facts |
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Introduction: legislation to be applied |
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Interactions with non-cash benefits provided through termination |
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Handling enquiries |
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Handling enquiries: application of Code of Practice 10 (COP10) |
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Handling enquiries: Employer's Further Guide to PAYE and NICs (CWG2) |
Termination payments and benefits: tax treatment of particular items
Common questions relating to termination payments and benefits: cross-references to information |
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The most common termination payments and benefits taxable in full |
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Compensation for loss of office |
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Compromise agreements: general |
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Compromise agreements: earnings |
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Action required if a payment is not chargeable under Sections 62, 225 or 394 ITEPA 2003 |
Payments under the Employment Rights Act 1996 and other employment statute
Employment Tribunals: general |
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Employment Tribunals: unfair dismissal |
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Compensation for discrimination |
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Employment Tribunals: wrongful dismissal |
Payments in lieu of notice (PILONs)
Payments in lieu of notice (PILONs) and gardening leave: general |
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Contractual payments |
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Automatic or customary payments |
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Damages and agreements |
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Agreements |
Termination payments and benefits: Section 401 ITEPA 2003
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Section 401 ITEPA 2003: general |
General |
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Types of payment within Section 401 ITEPA 2003 |
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Section 401 ITEPA 2003: scope |
Scope of charge |
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In connection with |
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Details |
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Benefits: meaning |
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Section 401 ITEPA 2003: foreign aspects |
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Calculation of damages: the Gourley principle |
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Section 401 ITEPA 2003: miscellaneous |
Year of assessment |
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Meaning of received |
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Certain payments made on behalf of or to the order of the employee excluded from charge |
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Section 401 ITEPA 2003: non-cash benefits |
Treatment of non-cash benefits for Section 401 ITEPA 2003: general |
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Valuation of non-cash benefits received on or after 6 April 1998: cash equivalent |
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Valuation of non-cash benefits received on or after 6 April 1998: usual application of cash equivalent definition. |
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Non-cash benefits received on or after 6 April 1998 but previously charged to tax |
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Benefits other than living accommodation received after 6 April 1998: cash equivalent: rules appropriate for particular benefits |
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Benefits other than living accommodation received on or after 6 April 1998: cash equivalent of beneficial loans treated as payment of interest |
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Benefit of living accommodation received on or after 6 April 1998: cash equivalent |
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Section 401 ITEPA 2003: threshold, exceptions and reduction |
General |
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Section 401 ITEPA 2003: the £30,000 threshold |
£30,000 threshold: single payment or benefit |
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£30,000 threshold: application for receipts on or after 6 April 1998 |
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£30,000 threshold: aggregating receipts |
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Meaning of associated employers |
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Record of threshold allowed |
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Section 401 ITEPA 2003: death |
Payments on death |
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Section 401 ITEPA 2003: injury and disability |
Injury and disability payments: general |
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Meaning of disability: Statement of Practice 2/1981 |
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Meaning of disability: Hasted v Horner (67TC439) |
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Typical disability case scenario |
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Agreements include non-disability claims |
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Disability cases: reports to Employment Income Technical |
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Interaction with capital gains tax |
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Section 401 ITEPA 2003: other exceptions |
Lump sums from certain pension schemes |
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Lump sums from overseas schemes: Extra-Statutory Concession A10 |
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Foreign service: general |
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Foreign service: definition and full exception |
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Foreign service: reduction of charge |
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Foreign service: service before 6 April 1974 |
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Benefits and other payments in respect of certain overseas territories |
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H M Forces |
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Double taxation relief |
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Contributions to approved retirement benefits schemes, etc |
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Payments to meet legal costs connected with termination |
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Payments for outplacement counselling |
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Additional lump sum compensation payment (ALSCP) |
Termination payments and benefits: redundancy payments
General |
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Statutory redundancy payments |
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Payments made under contractual terms |
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Non-statutory redundancy payments: general |
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Non-statutory redundancy payments: Statement of Practice 1/1994: general |
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Non-statutory redundancy payments: Statement of Practice 1/1994: clearance applications |
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Meaning of redundancy: statutory definition |
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Meaning of redundancy: application of statutory definition |
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Re-engagements: general |
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Re-engagements: interaction of employment and tax law |
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Site agreements for short-service employees: general |
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Site agreements for short-service employees: tax treatment |
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Site agreements for short-service employees: reports |
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Severance payments made under the working rule agreement for the engineering construction industry |
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Severance payments linked to Section 135 Employment Rights Act 1996: industries other than engineering construction |
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Severance payments made under the working rule agreement for the engineering construction industry: scale of payments |
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Redundancy payments by Department of Trade and Industry, etc: enquiries: exchange of information |
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Redundancy payments by Department of Trade and Industry, etc: tax treatment |
Termination payments and benefits: Section 401 ITEPA 2003: employer aspects
Reports by employers of payments and benefits within Section 401: settlements made after 5 April 1998: general |
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Reports by employers of payments and benefits within Section 401: settlements made after 5 April 1998: contents of report |
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Reports by employers of payments and benefits within Section 401: settlements made after 5 April 1998: subsequent reports |
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Employer's PAYE responsibilities |
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Assessment of Section 401 payments and benefits |
Termination payments and benefits: Examples
Introduction |
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Interaction with benefits received during employment |
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Interaction with benefits received during employment: Part 3 Chapter 6 ITEPA 2003 |
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In connection with |
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Provider of the payment or benefit |
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Provision received after termination |
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Legal obligation to pay |
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Payments and benefits received by someone other than the employee |
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Payments and benefits provided on behalf of the employee, or to the employee's order |
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Compensation for loss of office |
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Damages for breach of contract |
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Compromise agreements |
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Year of assessment for payments and benefits received on or after 6 April 1998 |
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Non-cash benefits received on or after 6 April 1998: Section 62 value |
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Examples of how the £30,000 threshold operates for receipts on or after 6 April 1998. |
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Meaning of associated employers |
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Foreign service exception: calculation |
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Foreign service exception: groups |
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Foreign service reduction: interaction with the £30,000 threshold |
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Foreign service reduction: calculation |
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Redundancy: Statement of Practice 1/1994: conditional payments |
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Calculation of damages: Gourley principle |
