SE13510 - Termination payments and benefits: Section 148 ICTA 1988: £30,000 exemption: pre-6 April 1998 receipts
Section 188(5) ICTA 1988 (as enacted before Section 58 FA 1998)
SE13530 explains that there are different rules for applying the £30,000 exemption to payments and benefits within Section 148 ICTA 1988, depending on the date of receipt. SE13110 defines “received” for this purpose.
- this instruction deals with the application of the £30,000 exemption for payments and benefits received before 6 April 1998
- for information on receipts on or after 6 April 1998 see SE13520.
The following table tells you how to arrive at the amount of the exemption to deduct from each payment:
| Situation | How to give the exemption |
| Payments or benefits
are chargeable in different tax years.
(This could happen, for example, where terminations from two associated companies are in different tax years: see SE13100) | Deduct the exempt
amount as far as possible from the payment chargeable in the
earliest year.
Deduct any balance from the payment chargeable in the next year, and so on until the £30,000 is used up See example SE13950 |
| More than one payment is chargeable in a single year | Apportion the
exemption.
See example SE13951 |
