30 |
14A.5.4.4 Exclusions |
Exclusions exist for payments on death, disability or injury,157 for certain pension benefits or indemnity insurance liabilities and for certain payments in relation to services for a foreign government of an overseas territory within the Commonwealth.158 A payment which is not a retirement benefit but is made for wrongful dismissal can come within section 403, but Revenue practice requires a close examination of the facts to determine the genuineness or otherwise of the claim.159 This is in order to separate payments coming within section 403 from those coming within section 394 which imposes a charge in full (ie no £30,000 exemption) on any benefit received from an unapproved retirement benefits scheme. Certain payments in respect of other types of foreign service the emoluments of which were treated on a special basis.160 |
14A.5.4.5 £30,000 Threshold |
In calculating the £30,000 threshold, any redundancy payment or ex gratia payment must be included, but not certain supplementary contributions to retirement schemes.161 There are also valuation rules for valuing benefits (cash and non-cash).162 Two payments for the same employment, or two payments for different employments with the same or associated employers,163 are aggregated, but payments for distinct employments with unassociated employers are not. Where payments are aggregated, the aggregation is cumulative from year to year, the £30,000 exemption being applied to earlier payments before later ones. |