Part 6Employment income: income which is not earnings or share-related

Chapter 3Payments and benefits on termination of employment etc.

Payments and benefits treated as employment income

402BF1Termination awards not benefiting from threshold to be treated as earnings

1

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

F2a

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.