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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
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Termination payments and benefits: action required if a payment is not chargeable under Sections 62, 225 or 394 ITEPA 2003

Section 401 ITEPA 2003If a payment is not chargeable under Sections 62, 225 or 394 ITEPA 2003 consider whether it falls within the scope of Section 401 ITEPA 2003 (see

EIM13010).

If it does, examine whether:

  • it is excepted from the charge (see EIM13500 and subsequent guidance) and/or whether
  • it qualifies for relief (see EIM13700).If it does not fall within the scope of Section 401 ITEPA 2003, consider liability to capital gains tax if it is a payment for the disposal of an asset (see

EIM00710).