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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Termination payments and benefits: the most common payments and benefits taxable in full

Section 62 ITEPA 2003The most common termination payments and benefits within

EIM12810 which are taxable in full under Section 62 ITEPA 2003 are shown below.

### Type of payment ### Notes ### Guidance  
A payment received under the terms and conditions of service. Such terms may be in the main contract document or elsewhere, for example in a staff handbook or letter of appointment.      
See example EIM13920. Most such payments are taxable under Section 62 ITEPA 2003 but exceptions are redundancy payments (see EIM13750) and lump sums from pension schemes approved by IR SPSS (Nottingham). EIM00610  
A non-contractual payment that the employer is accustomed to make and/or that the employee could reasonably have expected to receive.   EIM00640  
A payment made to induce an employee take up an employment. The payment is earnings (see EIM00515) from the new employment. EIM00700 See

EIM12950 for information concerning payments made under the Employment Rights Act 1996