SolvedEIM12850 | Termination payments and benefits: the most common payments and benefits taxable in full
From HM Revenue & Customs · Employment Income Manual
The most common termination payments and benefits within EIM12810 which are taxable in full under section 62 ITEPA 2003 are shown below.
| Type of payment | Notes | Guidance |
|---|---|---|
| A payment received under the terms and conditions of service - such terms may be in the main contract document or elsewhere, for example in a staff handbook or letter of appointment - see example EIM13920. | Most such payments are taxable under section 62 ITEPA 2003 but exceptions are redundancy payments (see EIM13750) and lump sums from pension schemes. | EIM00610 EIM13920 |
| A non-contractual payment that the employer is accustomed to make and/or that the employee could reasonably have expected to receive. | - | EIM00640 EIM12977 |
| A payment made to induce an employee take up an employment. | The payment is earnings (see EIM00515) from the new employment. | EIM00700 |
See EIM12950 for information concerning payments made under the Employment Rights Act 1996.