4(1)M1Subject to sub-paragraph (2)below, in the case of any payment in respect of which tax is chargeable under section 148,the following relief shall be allowed by way of deduction from the tax chargeable by virtue of that section, that is to say, there shall be ascertained—
(a)the amount of tax which would be chargeable apart from this paragraph in respect of the income of the holder or past holder of the office or employment for the chargeable period of which the payment is treated as income;
(b)the amount of tax which would have been so chargeable if the payment had not been made;
and the amount to be deducted shall be half the difference between the amount ascertained at (a)and the amount ascertained at (b).
(2)In the case of a payment which exceeds £50,000,this paragraph applies as if it were a payment of £50,000exactly.
Marginal Citations
M1Source—1970 Sch.8 7; 1981 s.31(3); 1982 s.43(1)