Taxes Consolidation Act 1997 Schedule 3, paragraph 14

Top-slicing relief ceases from 1 January 2014

Paragraph 14 of Schedule 3 abolishes top-slicing relief for ex-gratia termination payments made on or after 1 January 2014.

• Top-slicing relief was previously available under paragraph 10 of Schedule 3 to reduce the effective tax rate on certain termination payments
• Paragraph 14 provides that paragraph 10 ceased to apply to any payment made on or after 1 January 2014 that is chargeable to income tax under section 123
• This change was introduced by the Finance (No. 2) Act 2013 and applies regardless of the general relieving provisions in section 201
• Termination payments made before 1 January 2014 were unaffected and could still benefit from top-slicing relief where applicable