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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Termination payments and benefits: meaning of received

Section 403(3) ITEPA 2003

Cash is received when any of the following takes place:

  • when actual payment of the cash is made (see EIM42270)
  • when a payment on account of the cash is made
  • when the person to receive it can require it to be paid. In a termination this will normally be the date of termination but the parties can agree other arrangements.
  • when the person to receive it can require a payment on account of it to be made. So, for example, if a payment within Section 401 ITEPA 2003 is to be paid and it can be lawfully demanded, the cash is received at the date when it can be demanded, even if it is actually paid later.

A non-cash benefit is received when it is used or enjoyed. For example, if the benefit provided is the use of a car, that will be enjoyed as soon as the car is available, even if it is actually used only later.