Income Tax (Earnings and Pensions) Act 2003

403Charge on payment or other benefitU.K.
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(1)The amount of a payment or benefit to which this Chapter applies counts as employment income of the employee or former employee for the relevant tax year if and to the extent that it exceeds the £30,000 threshold.

(2)In this section “the relevant tax year” means the tax year in which the payment or other benefit is received.

(3)For the purposes of this Chapter—

(a)a cash benefit is treated as received—

(i)when it is paid or a payment is made on account of it, or

(ii)when the recipient becomes entitled to require payment of or on account of it, and

(b)a non-cash benefit is treated as received when it is used or enjoyed.

(4)For the purposes of this Chapter the amount of a payment or benefit in respect of an employee or former employee exceeds the £30,000 threshold if and to the extent that, when it is aggregated with other such payments or benefits to which this Chapter applies, it exceeds £30,000 according to the rules in section 404 (how the £30,000 threshold applies).

(5)If it is received after the death of the employee or former employee—

(a)the amount of a payment or benefit to which this Chapter applies counts as the employment income of the personal representatives for the relevant year if or to the extent that it exceeds £30,000 according to the rules in section 404, and

(b)the tax is accordingly to be assessed and charged on them and is a debt due from and payable out of the estate.

(6)In this Chapter references to the taxable person are to the person in relation to whom subsection (1) or (5) provides for an amount to count as employment income.