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
404How the £30,000 threshold applies
1
For the purpose of the £30,000 threshold in section 403(4) and (5), the payments and other benefits provided in respect of an employee or former employee which are to be aggregated are those provided—
a
in respect of the same employment,
b
in respect of different employments with the same employer, and
c
in respect of employments with employers who are associated.
2
For this purpose employers are “associated” if on a termination or change date—
a
one of them is under the control of the other, or
b
one of them is under the control of a third person who on that termination or change date or another such date controls or is under the control of the other.
3
In subsection (2)—
a
references to an employer, or to a person controlling or controlled by an employer, include the successors of the employer or person, and
b
“termination or change date” means a date on which a termination or change occurs in connection with which a payment or other benefit to which this Chapter applies is received in respect of the employee or former employee.
4
If payments and other benefits are received in different tax years, the £30,000 is set against the amount of payments and other benefits received in earlier years before those received in later years.
5
If more than one payment or other benefit is received in a tax year in which the threshold is exceeded—
a
the £30,000 (or the balance of it) is set against the amounts of cash benefits as they are received, and
b
any balance at the end of the year is set against the aggregate amount of non-cash benefits received in the year.