An employment is terminated on 1 July 2003. The agreement
provides for five payments commencing on 1 July 2004 and annually
thereafter.
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:
Date received |
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.
