Commentary

(d) Redundancy payments—statutory

Division BII Taxation of Employment Income
| Commentary

(d) Redundancy payments—statutory

| Commentary

(d)     Redundancy payments—statutory

No liability to income tax on earnings, or in respect of employment income other than earnings, arises by virtue of a statutory redundancy payment made under the ERA 1996 Part 11, other than under Part 6 Ch 3 (the termination provisions) (ITEPA 2003 s 309(1), (3)). There is a similar restriction on a charge on a payment on termination of employment under an agreement in respect of which there is an order in force under the ERA 1996 s 157 (exemption orders by the Secretary of State).

The effect of this is

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