Termination payments and benefits: example: Section 401 ITEPA 2003: provider of the payment or benefit
Section 401 ITEPA 2003An employee is dismissed with compensation of £50,000. The employer does not meet the cost. Instead, it is paid by the employer’s Canadian parent company. The employee never had a contract of employment with the latter.
Section 401 ITEPA 2003 applies to the £50,000 because the Section applies whether the payment is provided by the employer, the former employer or by another person.