SE13650 - Termination payments and benefits: Section 148 ICTA 1988: exemptions: payments on account of injury or disability: interaction with Capital Gains Tax

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

A taxpayer who claims exemption on “disability” grounds in respect of a termination payment within Section 148 ICTA 1988 may claim Ill-Health Retirement Relief for Capital Gains Tax purposes.

This could happen, for example, if an individual who is a full time working officer or employee of his or her personal company retires early on ill-health grounds and at the same time sells shares in the company.

The Capital Gains Tax claim is referred to the Board's Medical Adviser (see CG63400+). If the taxpayer's claim to that relief is accepted you may also accept that he qualifies for exemption from a Section 148 ICTA 1988 charge under SE13610.