SE13500 - Termination payments and benefits: Section 148 ICTA 1988: exemptions, reliefs and reduction
Schedule 11 ICTA 1988 (or Section 188 ICTA 1988 for payments received before 6 April 1988)
There are exemptions, reliefs and a reduction for payments and
benefits chargeable under Section 148 ICTA 1988. These are set out
in the Table below.
The reduction relates to "foreign service" (see
SE13700) and must be claimed within five
years from 31 January following the year of assessment (six years
from the end of the year of assessment for years of assessment up
to and including 1995/96). All the exemptions are given without a
claim if the conditions are satisfied.
Ensure that all Section 148 ICTA 1988 charges in respect of
an employment are added together before an exemption or relief is
given. For example:
- a charge on the provision of assets (see SE13020) must be added to any cash payment for that termination before the exemption is given
- payments and benefits must be aggregated in some circumstances (see SE13530)
| Exemption, relief or reduction | Notes | Guidance |
| £30,000 | General exemption for charges within Section 148 ICTA 1988 | SE13505 to SE13550 |
| Death | SE13600 | |
| Injury and disability | SE13610 to SE13650 | |
| Lump sum from retirement benefit scheme | Does not exempt lump sum from a non-approved scheme (see SE15000 onwards) | SE13660 |
| Lump sum from overseas retirement benefit scheme | Extra-Statutory Concession | SE13670 |
| Indemnity insurance | SE13675 | |
| Benefit from an overseas territory | SE13710 | |
| H M Forces payment | SE13720 | |
| Double taxation | SE13730 | |
| Contribution to approved retirement benefits scheme | SE13735 | |
| Payment to meet legal costs connected with termination | Extra-Statutory Concession | SE13740 |
| Payment for outplacement counselling | SE13745 | |
| Additional lump sum compensation payment | Payable to civil servants and ex-civil servants with retained rights from 1987 | SE13747 |
| "Foreign service" | A full exemption: if the conditions are not met, a "foreign service" reduction may still be due: see next entry below | SE13680 to SE13690 |
| "Foreign service" reduction | Reduces the amount of the payment that is chargeable | SE13700 |
The changes introduced by Section 58 FA 1998 did not change the available exemptions but altered their statutory references (see SE13040 first bullet). The old and new references are shown in the relevant instructions for the particular exemption.
