SE42250 - Emoluments from offices and employments: basis of assessment - link between the basis of assessment and the operation of PAYE - deduction of PAYE tax from termination etc payments

Section 148(4) ICTA 1988 (for 1997/98 and earlier years) and Section 148(3) ICTA 1988 as amended by Section 58 FA 1998 (for 1998/99 onwards)

There is one exception to the rule at SE42240 that the meaning of “payment” for PAYE purposes is the same as the meaning of “receipt” for assessing purposes.

Termination and other payments chargeable under Section 148 ICTA 1988 are treated as received for assessment purposes

for years before 1998/99, on the date of the termination or other event giving rise to the payment (see SE13100)

for 1998/99 onwards, at the time of receipt, as defined in Section 148(3) (as amended by Section 58 FA 1998)(see SE13110).

But in all cases, for PAYE purposes, the payment is treated as occurring at the earliest of the occasions set out in SE42260 onwards.

Note that the three Cases of Schedule E do not apply to payments chargeable under Section 148. There are special rules in Schedule 11 ICTA 1988 (as amended by Section 58 FA 1998) which apply when a payment chargeable under Section 148 relates to an office or employment which includes a period of foreign service (see SE13680).