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Specific provisions (in ITEPA 2003, ss 401–416) charge payments or benefits paid on the termination of a person's employment, or in connection with any change in the duties of, or earnings from, that employment, that would not otherwise be chargeable to tax or NIC (whether as earnings or under one of the other headings discussed in E4.802), either in full as post-employment notice pay (PENP) see E4.802C, or otherwise to the extent that they exceed £30,000. The measures were introduced in view of the growth of 'golden handshake' payments that previously escaped liability to tax. The provisions now cover a variety of payments. For HMRC's summary of the types of payments falling within ITEPA 2003, ss 401, 402, see EIM13005.

Clearly, in determining whether the provisions in sections 401–416 apply, it is necessary to determine whether or not a particular payment or benefit was in fact paid 'in connection with' either the termination of employment or any change in the duties of, or earnings from, employment¹. For more detailed guidance on whether a payment