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HMRC internal manual

Employment Income Manual

Termination payments and benefits: Section 401 ITEPA 2003: £30,000 threshold: payments and benefits to be aggregated

Section 403(3) and 404 ITEPA 2003Before the £30,000 threshold (see

EIM13505) is applied, it is necessary to add together all the payments and benefits within Section 401 ITEPA 2003 that are made to, or in respect of, the same person in connection with:
* the same office or employment


  • different offices or employments with the same employer


  • different offices or employments with associated employers (see EIM13540).The threshold is then applied to the total. This ensures that only one £30,000 threshold is applied for that total.

For example, a director is dismissed from two separate employments with associated employers, receiving £25,000 in each case within Section 401 ITEPA 2003. The aggregated total received is £50,000 and only one £30,000 threshold is available against that total.