Income and Corporation Taxes Act 1988 (c.1)U.K.
1(1)Section 189 of the Taxes Act 1988 (exemption from Schedule E charge of lump sum payments under approved retirement benefits schemes, etc) is amended as follows.U.K.
(2)Make the existing provision subsection (1).
(3)In paragraph (a) of that subsection for the words from “and is neither" to “section 600" substitute “ and is not excepted from this paragraph by subsection (2) or (3) below ”.
(4)After that subsection insert—
“(2)Subsection (1)(a) above does not apply to a payment of compensation for loss of office or employment, or for loss or diminution of emoluments, unless—
(a)the loss or diminution is due to ill-health, or
(b)the payment is properly regarded as earned by past service.
(3)Subsection (1)(a) above does not apply to a payment chargeable to tax under section 600 (payments not authorised by rules of scheme).”.
2U.K.In section 190 of the Taxes Act 1988 (payments to MPs and others exempt from tax as emoluments), for the words from “but without prejudice" to the end substitute “ but without prejudice to any charge to tax under section 148 ”.
3U.K.In section 202B(8) of the Taxes Act 1988 (receipts basis of assessment), for “143(1)(a) or 148(4)" substitute “ or 143(1)(a) ”.
4U.K.In section 833(3)(a) of the Taxes Act 1988 (calculation of top slice of a person’s income), after “payment" insert “ or other benefit ”.