In addition to payments or benefits which are completely exempt from any liability to income tax (see E4.802BB), the legislation provides for some payments and benefits to be specifically excepted from any charge to tax on the termination of, or change in the duties of or earnings from, an employment. These payments are discussed in detail below.
Payments not exceeding £30,000
For years up to and including 2017/18, any payment or benefit to which ITEPA 2003, s 403 applies is exempt from tax to the extent that it does not exceed £30,0001 (see E4.812B for commentary on the rules applying before 6 April 2018). Such payments and benefits do not attract NIC (see E4.802D for a summary of the NIC implications for termination payments made between 6 April 2018 and 5 April 2019, and post 6 April 2019).
Please see 'Termination payments qualifying for £30,000 exemption' at E4.802C for commentary regarding the £30,000 post 6 April 2018.
Employer contributions to payments from pension schemes
Employees who leave employment may receive
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Web page updated on 17 Mar 2025 13:29