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HMRC internal manual

Employment Income Manual

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 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