Termination payments and benefits: section 401 ITEPA 2003: £30,000 threshold: payments and benefits received on or after 6 April 1998
Section 404(5) ITEPA 2003
EIM13515 explains that section 403(1) ITEPA 2003 provides a £30,000 threshold for payments and benefits which are chargeable to tax as specific employment income. The £30,000 threshold is applied in the following order:
- first, against cash benefits as they are received in the year
- second, against the aggregate of non-cash benefits at the end of the year (this can be relevant to an employer considering whether the PAYE Regulations apply to a payment)
See example EIM13955.