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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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Termination payments and benefits: certain payments and benefits made on behalf of or to the order of an employee that are excluded from Section 401 ITEPA 2003

EIM13020 explained that payments or benefits made on behalf of or to the order of an employee are within the scope of Section 401 ITEPA 2003. However, the following payments or benefits may be excepted from the charge if an employer makes them:

  • into an approved retirement benefits scheme or registered occupational pension scheme from 6 April 2006)(see EIM13735), or
  • to an employee’s solicitor in payment of legal costs that the employee has incurred in taking action, arising from the termination of the employment, against the employer (see EIM13740), or
  • for outplacement counselling on coping with job loss and finding new work (see EIM13745).