Taxes Consolidation Act 1997 Schedule 3 paragraph 7

Multiple termantion payments from the same employer

Paragraph 7 of Schedule 3 sets out the rules for aggregating multiple termination payments from the same or associated employers when calculating tax relief under paragraph 6.

• Where two or more termination payments are made by the same or associated employers, they are treated as a single payment equal to their total for the purposes of calculating relief under paragraph 6.
• If the payments relate to different employments, the standard capital superannuation benefit (SCSB) figures for each employment are added together.
• Where payments fall into different tax years, the relief for any later year is reduced by the amount of relief already given in earlier years, preventing any double benefit.
• If the SCSB calculation produces different amounts for different payments from the same employment, the highest SCSB figure is used.