SE12800 – Termination payments and benefits - table of contents

Termination payments and benefits: introduction

SE12805Introduction: finding the facts
SE12810Introduction: legislation to be applied
SE12815Interactions with non-cash benefits provided through termination
SE12820Handling enquiries
SE12825Handling enquiries: application of Code of Practice 10 (COP10)
SE12827Handling enquiries: Employer's Further Guide to PAYE & NICs (CWG2)

Termination payments and benefits: tax treatment of particular items

SE12830Common questions relating to termination payments and benefits: cross-references to information
SE12850The most common termination payments and benefits taxable in full
SE12852Compensation for loss of office
SE12855Compromise Agreements: general
SE12856Compromise Agreements: emoluments
SE12870Action required if a payment is not chargeable under Sections 19, 313 or 596A ICTA 1988
Payments under the Employment Rights Act 1996 and other employment statute
SE12950Employment Tribunals: general
SE12960Employment Tribunals: unfair dismissal
SE12965Compensation for discrimination
SE12970Employment Tribunals: wrongful dismissal
Payments in lieu of notice ('PILONs')
SE12975'PILONs': general
SE12976'PILONs': contractual payments
SE12977'PILONs': expectation or custom
SE12978'PILONs': damages
SE12979'PILONs': agreements

Termination payments and benefits: Section 148 ICTA 1988

Section 148 ICTA 1988: general
SE13000General
SE13005Types of payment within Section 148 ICTA 1988
Section 148 ICTA 1988: scope
SE13010Scope of charge
SE13012“In connection with”
SE13020details
SE13030benefits
 Section 148 ICTA 1988: changes from 6 April 1998
SE13040Changes to Section 148 made by Section 58 FA 1998 from 6 April 1998
 Section 148 ICTA 1988: foreign aspects
SE13050Section 148: Foreign aspects
 Section 148 ICTA 1988: damages
SE13070Calculation of damages: the ‘Gourley’ principle
Section 148 ICTA 1988: miscellaneous
SE13100Year of assessment
SE13110Meaning of “received”
SE13120Certain payments made on behalf of or to the order of the employee excluded from charge
.Section 148 ICTA 1988: non-cash benefits
SE13250Treatment of non-cash benefits for Section 148 ICTA 1988: general
SE13255Non-cash benefits received before 6 April 1998
SE13260Terminations between 6 April 1996 and 5 April 1998: transitional arrangements for non-cash benefits
SE13270Valuation of non-cash benefits received on or after 6 April 1998: cash equivalent
SE13280Valuation of non-cash benefits received on or after 6 April 1998: usual application of “cash equivalent” definition.
SE13290Non-cash benefits received on or after 6 April 1998 but previously charged to tax
SE13300Benefits other than living accommodation received on or after 6 April 1998: “cash equivalent”
SE13310Benefits other than living accommodation received after 6 April 1998: “cash equivalent”: rules appropriate for particular benefits
SE13320Benefits other than living accommodation received on or after 6 April 1998: “cash equivalent” of beneficial loans treated as payment of interest
SE13330Benefit of living accommodation received on or after 6 April 1998: “cash equivalent”
SE13331Benefit of living accommodation received on or after 6 April 1998: “cash equivalent”: definitions
SE13338Benefit of living accommodation received on or after 6 April 1998: “cash equivalent”: cost of providing the accommodation is £75,000 or less
SE13340Benefit of living accommodation received on or after 6 April 1998: “cash equivalent”: “cost of providing the accommodation” is more than £75,000: general
SE13350Benefit of living accommodation received on or after 6 April 1998: “cash equivalent”: “cost of providing the accommodation” is more than £75,000: method A
SE13360Benefit of living accommodation received on or after 6 April 1998: “cash equivalent”: “cost of providing the accommodation” is more than £75,000: method B
Section 148 ICTA 1988: exemptions and relief
SE13500General
Section 148 ICTA 1988: the £30000 exemption
SE13505£30000 exemption: single payment or benefit
SE13510£30000 exemption: application for receipts before 6 April 1998
SE13520£30000 exemption: application for receipts on or after 6 April 1998
SE13530£30000 exemption: aggregating receipts
SE13540Meaning of “associated employers”
SE13550Record of exemption allowed
Section 148 ICTA 1988: death
SE13600Payments on death
Section 148 ICTA 1988: Injury and disability
SE13610Injury and disability payments: general
SE13620Meaning of “disability”: Statement of Practice 2/1981
SE13630Meaning of “disability”: Hasted v Horner (67 TC 439)
SE13640Disability cases: reports to Personal Tax (Technical)
SE13650Interaction with Capital Gains Tax
Section 148 ICTA 1988: other exemptions
SE13660Lump sums from superannuation schemes
SE13670Lump sums from overseas schemes: Extra Statutory Concession A10
SE13680Foreign service: general
SE13690Foreign service: definition and full exemption
SE13700Foreign service: reduction of charge
SE13705Foreign service: service before 6 April 1974
SE13710Benefits and other payments in respect of certain overseas territories
SE13720H M Forces
SE13730Double Taxation Relief
SE13735Contributions to approved retirement benefits schemes etc
SE13740Payments to meet legal costs connected with termination
SE13745Payments for outplacement counselling
SE13747Additional Lump Sum Compensation Payment (ALSCP)

Termination payments and benefits: redundancy payments

SE13750General
SE13760Statutory redundancy payments
SE13765Payments made under contractual terms
SE13775Non-statutory redundancy payments: general
SE13785Non-statutory redundancy payments: Statement of Practice 1/1994: general
SE13790Non-statutory redundancy payments: Statement of Practice 1/1994: clearance applications
SE13800Meaning of “redundancy”: statutory definition
SE13802Meaning of “redundancy”: application of statutory definition
SE13810Re-engagements: general
SE13820Re-engagements: interaction of employment and tax law
SE13825Site agreements for short-service employees: general
SE13830Site agreements for short-service employees: tax treatment
SE13832Site agreements for short-service employees: reports to Regional Office
SE13834Severance payments made under the Working Rule agreement for the engineering construction industry
SE13836Severance payments linked to Section 135 Employment Rights Act 1996: industries other than engineering construction: reports to Regional Office
SE13838Severance payments made under the Working Rule agreement for the engineering construction industry: scale of payments
SE13840Redundancy payments by Department of Trade and Industry etc: enquiries: exchange of information
SE13842Redundancy payments by Department of Trade and Industry etc: tax treatment

Termination payments and benefits: Section 148 ICTA 1988: employer aspects

SE13844Reports by employers of payments and benefits within Section 148: settlements made after 5 April 1998: general
SE13850Reports by employers of payments and benefits within Section 148: settlements made after 5 April 1998: contents of report
SE13855Reports by employers of payments and benefits within Section 148: settlements made after 5 April 1998: subsequent reports
SE13865Reports by employers of payments and benefits within Section 148: settlements made before 6 April 1998
SE13870Employer’s PAYE responsibilities
SE13872Assessment of Section 148 payments and benefits

Termination payments and benefits: Examples

SE13900Introduction
SE13905Interaction with benefits received during employment: Sections 148 & 154 ICTA 1988
SE13906Interaction with benefits received during employment: Sections 148 & 157 ICTA 1988
SE13910“In connection with”
SE13911Provider of the payment or benefit
SE13912Provision received after termination
SE13914Legal obligation to pay
SE13916Payments and benefits received by someone other than the employee
SE13918Payments and benefits provided on behalf of the employee, or to the employee’s order
SE13920Compensation for loss of office
SE13922Damages for breach of contract
SE13924Compromise agreements
SE13926Year of assessment for pre-6.4.98 termination payments and benefits
SE13928Year of assessment for pre-6.4.98 change payments and benefits
SE13930Year of assessment for pre-6.4.98 commutation payments and benefits
SE13932Year of assessment for payments and benefits received on or after 6.4.98
SE13934Non-cash benefits received on or after 6 April 1998: “Section 19” value
SE13940The “transitional arrangements” for terminations in 1996/97 and 1997/98: non-cash receipts before 6 April 1998
SE13945Non-cash benefits received before 6 April 1998: “valuable consideration”
SE13950Example of how the £30000 exemption operates for receipts pre-6 April 1998 where payments fall into different tax years.
SE13951Examples of how the £30000 exemption operates for receipts pre-6 April 1998 where payments fall into the same tax year.
SE13955Examples of how the £30000 exemption operates for receipts on or after 6 April 1998.
SE13960Example of how the £30000 exemption operates for receipts overlapping 6 April 1998
SE13965Meaning of “associated employers”
SE13970“Foreign service” exemption: calculation
SE13975“Foreign service” exemption: groups
SE13980Foreign service reduction: interaction with the £30000 exemption
SE13985Foreign service reduction: calculation
SE13990Redundancy: Statement of Practice 1/1994: conditional payments
SE13995Calculation of damages: “Gourley” principle
SE14000Living accommodation: “cost of providing”