The most common termination payments and benefits within EIM12810 which are taxable in full under Section 62 ITEPA 2003 are shown below.
Type of payment |
Notes |
Guidance |
| A payment received under
the terms and conditions of service. Such terms may be in the main
contract document or elsewhere, for example in a staff handbook or
letter of appointment.
See example EIM13920. | Most such payments are taxable under Section 62 ITEPA 2003 but exceptions are redundancy payments (see EIM13750) and lump sums from pension schemes approved by IR SPSS (Nottingham). | EIM00610
EIM13920 |
| A non-contractual payment that the employer is accustomed to make and/or that the employee could reasonably have expected to receive. |
| EIM00640
EIM12977 |
| A payment made to induce an employee take up an employment. | The payment is earnings (see EIM00515) from the new employment. | EIM00700 |
See EIM12950 for information concerning payments made under the Employment Rights Act 1996
