Income Tax (Earnings and Pensions) Act 2003

[F1402BTermination awards not benefiting from threshold to be treated as earningsU.K.
This adran has no associated Nodiadau Esboniadol

(1)The amount of a termination award to which this section applies—

[F2(a)]is treated as an amount of earnings of the employee, or former employee, from the employment [F3, but

(b)is not capable of being an amount to which section 27 applies by virtue of subsection 1(a) or (b) of that section (UK-based taxable earnings for year when employee not resident in UK).]

(2)See also section 7(3)(b) and (5)(ca) (which cause amounts treated as earnings under this section to be included in general earnings).

(3)Section 403(3) (when benefits are received) does not apply in relation to payments or other benefits to which this section applies.]

Textual Amendments

F1Ss. 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)

F2Words in s. 402B(1) renumbered as s. 402B(1)(a) (with effect in accordance with s. 22(8) of the amending Act) by Finance Act 2021 (c. 26), s. 22(6)(a)

F3S. 402B(1)(b) and word inserted (with effect in accordance with s. 22(8) of the amending Act) by Finance Act 2021 (c. 26), s. 22(6)(b)