SE13600 - Termination payments and benefits: Section 148 ICTA 1988: exemptions: payments on death

Paragraph 3(a) Schedule 11 ICTA 1988 (Section 188(1)(a) ICTA 1988 for payments and benefits received before 6 April 1998)

A payment or benefit given in respect of the termination of an office or employment by the death of the holder is exempt from tax under Section 148 ICTA 1988.

However, a payment made after 31 October 1991 on an employee's (or ex-employee's) death may be chargeable under Section 596A ICTA 1988 rather than Section 148 ICTA 1988 if a non-approved retirement benefits scheme exists (see SE15000 and in particular SE15020 onwards).