An employment is terminated on 1 July 2003. The agreement
provides for five payments commencing on 1 July 2004 and annually
All the payments are received on or after 6 April 1998 (see EIM13110) and so are assessed in the tax year in which the receipt takes place, as follows:
Year of assessment
|1 July 2004||2004/05|
|1 July 2005||2005/06|
|1 July 2006||2006/07|
|1 July 2007||2007/08|
|1 July 2008||2008/09|
The £30,000 threshold (see
EIM13520) is applied to each payment in
turn until it is used up.
Note: all payments and benefits within Section 401 ITEPA 2003 are dealt with in the same way, whatever the nature of the event giving rise to them. So a change payment (see EIM13010) follows the same rules as a termination payment.
For payments and benefits received before 6 April 1998, see SE13926, SE13928 and SE13930.