148.-[Payments and other benefits in connection with termination of employment, etc.

(1) Payments and other benefits not otherwise chargeable to tax which are received in connection with-

(a) the termination of a person's employment, or
(b) any change in the duties of or emoluments from a person's employment,

are chargeable to tax under this section if and to the extent that their amount exceeds £30,000.
[ (2) For the purposes of this section "benefit" includes anything which, disregarding any exemption-

(a) would be an emolument of the employment, or
(b) would be chargeable to tax as an emolument of the employment,

if received for the performance of the duties of the employment.
(2A) But subsection (1) does not apply-

(a) to any payment or other benefit received in connection with any change in the duties of, or emoluments from, a person's employment to the extent that it is a benefit which, if received for the performance of the duties of the employment, would fall within paragraph 1(1) of Schedule 11A, or
(b) to any payment or other benefit received in connection with the termination of a person's employment-

(i) that is a benefit which, if received for the performance of the duties of the employment, would fall within section 155(1) or (5), 155AA, 156A, 157(3), 159AA(3), 159AC(3), 200B(2)(b), 200E(2)(b), 588(1), 589A or 643(1), or
(ii) to the extent that it is a benefit which, if so received, would not be included in the emoluments of that person by virtue of section 200D(1) or 200J(2) ⁶¹ .]

(3) An amount chargeable to tax under this section is income chargeable under Schedule E for the year of assessment in which the payment or other benefit is received.
The right to receive the payments or other benefits is not itself regarded as a benefit for this purpose.
(4) For the purposes of this section-

(a) a cash benefit is treated as received-

(i) when payment is made of or on account of the benefit, or
(ii) when the recipient becomes entitled to require payment of or on account of the benefit; and

(b) a non-cash benefit is treated as received when it is used or enjoyed.

(5) This section applies-

(a) whether the payment or other benefit is provided by the employer or former employer or by another person, and
(b) whether or not the payment or other benefit is provided in pursuance of a legal obligation.

(6) This section has effect subject to Schedule 11, which contains provisions extending, restricting and otherwise supplementing the provisions of this section.
(7) In this section and that Schedule "employment" includes an office and related expressions have a corresponding meaning⁶².]
Previous wording -
"Payments on retirement or removal from office or employment. 148.-(1) Subject to the provisions of this section and section 188, tax shall be charged under Schedule E in respect of any payment to which this section applies which is made to the holder or past holder of any office or employment, or to his executors or administrators, whether made by the person under whom he holds or held the office or employment or by any other person. (2) This section applies to any payment (not otherwise chargeable to tax) which is made, whether in pursuance of any legal obligation or not, either directly or indirectly in consideration or in consequence of, or otherwise in connection with, the termination of the holding of the office or employment or any change in its functions or emoluments, including any payment in commutation of annual or periodical payments (whether chargeable to tax or not) which would otherwise have been so made. (3) For the purposes of this section and section 188, any payment made to the spouse or any relative or dependant of a person who holds or has held an office or employment, or made on behalf of or to the order of that person, shall be treated as made to that person, and any valuable consideration other than money shall be treated as a payment of money equal to the value of that consideration at the date when it is given. (4) Any payment which is chargeable to tax by virtue of this section shall be treated as income received on the following date, that is to say-(a) in the case of a payment in commutation of annual or other periodical payments, the date on which the commutation is effected; and (b) in the case of any other payment, the date of the termination or change in respect of which the payment is made ⁶³; and shall be treated as emoluments of the holder or past holder of the office or employment assessable to tax under Schedule E; and any such payment shall be treated for all the purposes of the Income Tax Acts as earned income. (5) In the case of the death of any person who, if he had not died, would have been chargeable to tax in respect of any such payment, the tax which would have been so chargeable shall be assessed and charged upon his executors or administrators and shall be a debt due from and payable out of his estate. (6) This section shall not apply to any payment made in pursuance of an obligation incurred before 6th April 1960. (7) Where any payment chargeable to tax under this section is made to any person in any year of assessment, it shall be the duty of the person by whom it is made to deliver particulars thereof in writing to the inspector not later than 30 days after the end of that year ⁶⁴.".