Employment Alert No. 63 - New Tax Act
May 23, 2003
The Income Tax (Earnings and Pensions) Act 2003 came into force on 6 April 2003.
It repeals and replaces the employment sections of the Income and Corporation Taxes Act 1988 including section 148. This section provided that payments which are not otherwise chargeable to tax and which are received in connection with the termination of a person's employment are chargeable to tax if they exceed £30,000.
This section has now been repealed and has been replaced by Part 6, Chapter 3 Income Tax (Earnings and Pensions) Act 2003.
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What does this mean for employers? |
The substantive law is essentially unchanged but the wording in the legislation has been tidied up and the legislation section numbers have changed.
Employers should ensure that they review their compromise agreements to ensure that the correct statutory references are included in them.
