EIM13012 - Termination payments and benefits: Section 401 ITEPA 2003: scope of the charge: in connection with termination or change

Section 401(1) ITEPA 2003

Briefly, Section 401 ITEPA 2003 refers to payments and benefits received in connection with a termination of employment (or change in the duties of or earnings from the employment).

»Ê¹ÚÌåÓýapp full scope includes payments and benefits received

“directly or indirectly in consideration or in consequence of, or otherwise in connection with, the termination or change�.

This is a phrase of very wide scope, see EIM13910. For example, in HMRC v Colquhoun the phrase “otherwise in connection with� was equated with “in any way connected with�.