EIM12830 - Termination payments and benefits: common questions: cross-references to instructions
The table below lists some of the more common questions about the tax treatment of termination payments and benefits. It is not comprehensive nor in any particular order.
The best starting point for guidance on dealing with termination payments is EIM12805.
| ### Common question | ### Guidance |
|---|---|
| Are termination payments and benefits always taxable under Section 401 ITEPA 2003? | EIM12805 |
| How is post-employment notice pay (PENP) calculated? | EIM13874 |
| How are non-cash benefits valued for Section 401 ITEPA 2003 purposes? | EIM13250 |
| How is unfair dismissal dealt with? | EIM12960 |
| What is a restrictive covenant? | EIM03600 |
| How are payments in lieu of notice (PILONs) taxed? | EIM12975 |
| What are damages? | EIM13070 |
| What difference does a compromise agreement make? | EIM12855 |
| How are out of court settlements dealt with? | EIM12855 |
| How is compensation for loss of office dealt with? | EIM12852 |
| What can be taxed by Section 401 ITEPA 2003? | EIM13000 |
| What are the reporting requirements for employers for Section 401 ITEPA 2003? | EIM13844 |
| What is a genuine redundancy? | EIM13800 |
| Must a clearance be given for a redundancy scheme? | EIM13785 |
| What is the year of assessment for Section 401 ITEPA 2003? | EIM13100 |
| How are awards by Employment Tribunals taxed? | EIM12950 |