SE13100 - Termination payments and benefits: year for which the payment or benefit is assessed
Section 148 ICTA 1988(4) (for receipts before 6 April 1998) or Section 148 ICTA 1988(3) ICTA 1988 (for receipts on or after 6 April 1998)
Following changes to Section 148 ICTA 1988 made by Section 58 and Schedule 9 Finance Act 1998 (see SE13040), you must first consider the date the payment or benefit was “received” in order to identify the year of assessment for a Section 148 ICTA 1988 ICTA charge.
For the meaning of “received” in this context go to SE13110 then return to this guidance.
- A payment or benefit received on or after 6 April 1998 is assessable under Schedule E for the tax year in which the payment or benefit is “received” unless previously charged to tax (see SE13290). There is an example at example SE13932.
- A payment or benefit received before 6 April 1998 is assessable under Schedule E on the date shown in the table below.
| Event giving rise to the payment or benefit | Year of assessment |
| Termination | The tax year in which the termination took place. See example SE13926 |
| Change in functions or emoluments | The tax year in which the change took place. See example SE13928 |
| Commutation | The tax year in which the commutation is effected. See example SE13930 |
So where a several payments or benefit are received before 6 April 1998 in respect of the same termination, they are all assessed under Section 148 ICTA 1988 for the tax year in which the employment ended. That is so even if the payments were actually received in different years. Section 35 TMA1970 provides the authority for making assessments for the year of termination etc., however long ago that may be.
