SE13040 - Termination payments and benefits: changes to Section 148 ICTA 1988 from 6 April 1998 made by Section 58 and Schedule 9 FA 1998

Section 148 ICTA 1988 and Section 58 FA 1998

Section 58 FA 1998 introduced changes to Section 148 ICTA 1988 with effect from 6 April 1998. They were:

• re-ordering of the existing provisions. This was done as part of the Tax Law Rewrite Project to produce a simpler, more logical structure to the legislation. This process has no effect on the meaning of the law
• changing the date when income within Section 148 ICTA 1988 arises, which affects the year for which it is to be assessed. The old and new rules are shown at SE13100
• changing how non-cash benefits are valued. The old and new rules are shown at SE13255 and SE13270 respectively
• allowing unused exemption to be carried forward to a subsequent year (see SE13505)
• the introduction of interest relief in respect of beneficial loans (see SE13320)
• a statement that the right to receive a benefit is not itself a "benefit" (see SE13030).

To decide which rules apply, the first step is to decide when the payment or benefit was “received”. How to do this is explained in SE13110

Note: for terminations that took place between 6 April 1996 and 5 April 1998, there were “transitional arrangements”. See SE13260 for details.