EIM13932 - Termination payments and benefits: example: Section 401 ITEPA 2003: year of assessment for payments and benefits received on or after 6 April 1998
Section 401 ITEPA 2003
An employment is terminated on 1 July 2003. The agreement provides for five payments commencing on 1 July 2004 and annually thereafter.
All the payments are received on or after 6 April 1998 (see EIM13110) and so are assessed in the tax year in which the receipt takes place, as follows:
### Date received | ### Year of assessment |
---|---|
1 July 2004 | 2004/05 |
1 July 2005 | 2005/06 |
1 July 2006 | 2006/07 |
1 July 2007 | 2007/08 |
1 July 2008 | 2008/09 |
The £30,000 threshold (see EIM13520) is applied to each payment in turn until it is used up.
Note: all payments and benefits within Section 401 ITEPA 2003 are dealt with in the same way, whatever the nature of the event giving rise to them. So a change payment (see EIM13010) follows the same rules as a termination payment.
For payments and benefits received before 6 April 1998, see SE13926, SE13928 and SE13930.