Skip to content
Solved
SearchBrowse
Sign in

Contents

Legislation
Income Tax (Earnings and Pensions) Act 2003

Crossheading Payments and benefits treated as employment income

  • Section 402A Split of payments and other benefits between sections 402B and 403
  • Section 402B Termination awards not benefiting from threshold to be treated as earnings
  • Section 402C The termination awards to which section 402B applies
  • Section 402D “Post-employment notice pay”
  • Section 402E Meaning of “trigger date” and “post-employment notice period” in section 402D
  • Section 403 Charge on payment or other benefit where threshold applies
  • Section 404 How the £30,000 threshold applies
  • Section 404A Amounts charged to be treated as highest part of total income
  • Section 404B Power to vary threshold
  1. Payments and benefits treated as employment income
  2. The termination awards to which section 402B applies

Section 402C | The termination awards to which section 402B applies F1

From legislation.gov.uk

(1)This section has effect for the purpose of identifying the extent to which section 402B applies to termination awards in respect of the termination of the employment of the employee.

(2)In this section “relevant termination award” means a termination award that is neither—

(a)a redundancy payment, nor

(b)so much of an approved contractual payment as is equal to or less than the amount which would have been due if a redundancy payment had been payable.

(3)If the post-employment notice pay (see section 402D) in respect of the termination is greater than, or equal to, the total amount of the relevant termination awards in respect of the termination, section 402B applies to all of those relevant termination awards.

(4)If the post-employment notice pay in respect of the termination is less than the total amount of the relevant termination awards in respect of the termination but is not nil—

(a)section 402B applies to a part of those relevant termination awards, and

(b)the amount of that part is equal to the post-employment notice pay.

(5)Section 309(4) to (6) (meaning of “redundancy payment” and “approved contractual payment” etc) apply for the purposes of subsection (2) as they apply for the purposes of section 309.

Notes

  1. F1

    Ss. 402A-402E inserted (with effect in accordance with s. 5(10) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 5(3)

PreviousNext
PrivacyTerms