EIM68228 - Tax treatment of Post
Office employees: sub- postmasters: payments on termination of
office
EIM68220 listed the main terminal
payments made to sub-postmasters.
-
Closure payments: these payments are connected
with the termination of the office of subpostmaster and so are
chargeable only under Section 401 ITEPA 2003 (see
EIM13000 and below). Examples are:
- Payments made by the Post Office
Discretionary Fund. Paid where the Post Office decides to close or
relocate a branch
- Payments under network rationalisation
initiatives such as the Urban Network Reinvention Scheme from
2002
Note: if the aggregate of payments exceeds
£30,000, the excess counts as employment income (see
EIM00512) for the year of receipt (see
EIM13505 and
EIM13100). Where a sub-
postmaster’s remuneration has been included with trading
receipts chargeable as Trading Income (see EIM68205) the excess
over £30,000 should not be included in the Case 1 computation.
For the treatment of surplus payments see
EIM68225.
