Sections 62, 225, 394 and 401 ITEPA 2003

Having found what each element of a termination package is for (see EIM12805), each element should then be looked at separately following the structure set out below.

(1)First, consider section 62 ITEPA 2003: is the payment or benefit earnings from the employment? See EIM12850 for the more common termination payments that are within section 62. Material on earnings generally is at EIM00600 and subsequent guidance, particularly EIM00530 regarding non-money receipts. If section 62 does not apply,

(2)second, consider section 225 ITEPA 2003: is the payment or benefit for a restrictive covenant? See EIM03600 onwards. If section 225 does not apply

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