SE13505 - Termination payments and benefits: Sections148 ICTA 1988: £30,000 exemption: general

Section 148 ICTA 1988(1) and Paragraph 7(3) & (4) Schedule 11 ICTA 1988 (as amended by Section 58 ICTA 1988)

A single payment or benefit within Section 148 ICTA 1988 of £30,000 or less is exempt from tax from 1988-89 onwards. If the payment or benefit exceeds £30,000, only the excess over that figure is chargeable.

Some payments and benefits must be added together before giving the exemption, producing an aggregate payment or benefit. SE13530 explains when this must be done and explains how receipts before and after 6 April 1998 within that aggregate are then dealt with.

The legislation for pre-6 April 1998 receipts was in 188(5) ICTA 1988. For receipts on or after that date, the legislation is Section 148(1) ICTA 1988 and Paragraph 7 Schedule 11 ICTA 1988.