Part 6Employment income: income which is not earnings or share-related
Chapter 3Payments and benefits on termination of employment etc.
Payments and benefits treated as employment income
403Charge on payment or other benefit F1where threshold applies
(1)
The amount of a payment or benefit to which this F2section applies counts as employment income of the employee or former employee for the relevant tax year if and to the extent that it exceeds the £30,000 threshold.
(2)
In this section “the relevant tax year” means the tax year in which the payment or other benefit is received.
(3)
For the purposes of this Chapter F3(but see section 402B(3)) —
(a)
a cash benefit is treated as received—
(i)
when it is paid or a payment is made on account of it, or
(ii)
when the recipient becomes entitled to require payment of or on account of it, and
(b)
a non-cash benefit is treated as received when it is used or enjoyed.
(4)
For the purposes of this Chapter the amount of a payment or benefit in respect of an employee or former employee exceeds the £30,000 threshold if and to the extent that, F4when aggregated with—
(a)
other payments or benefits in respect of the employee or former employee that are payments or benefits to which this section applies, and
(b)
other payments or benefits in respect of the employee or former employee that are payments or benefits—
(i)
received in the tax year 2017-18 or an earlier tax year, and
(ii)
to which this Chapter applied in the tax year of receipt,
it exceeds £30,000 according to the rules in section 404 (how the £30,000 threshold applies).
(5)
If it is received after the death of the employee or former employee—
(a)
the amount of a payment or benefit to which this F5section applies counts as the employment income of the personal representatives for the relevant year if or to the extent that it exceeds £30,000 according to the rules in section 404, and
(b)
the tax is accordingly to be assessed and charged on them and is a debt due from and payable out of the estate.
(6)
In this Chapter references to the taxable person are to the person in relation to whom subsection (1) or (5) provides for an amount to count as employment income F6or, as the case may be, in relation to whom section 402B(1) provides for an amount to be treated as an amount of earnings .