SolvedEIM13878 | Relevant termination awards: relevant termination awards subject to section 403 ITEPA 2003
From HM Revenue & Customs · Employment Income Manual
With effect from 6 April 2018, some termination payments and benefits are chargeable to income tax as general earnings and do not benefit from the £30,000 threshold available in section 403 ITEPA 2003.
EIM13874 defines the term ‘relevant termination awards’ and explains that relevant termination awards are split into 2 elements:
post-employment notice pay (PENP) (see EIM13876)
relevant termination awards subject to section 403 ITEPA 2003
Termination awards subject to section 403 ITEPA 2003 are chargeable to tax as specific employment income and benefit from the £30,000 threshold (see EIM13505 onwards). These termination awards are calculated by subtracting the amount of PENP from the total amount of all relevant termination awards received.