Termination Awards Section 1: Termination awards: Great Britain
Subsection (1) provides for amendments to section 10 of the SSCBA 1992.
	Subsection (2) inserts new subsections (1A), (1B) and (1C) into section 10 of the SSCBA 1992.
	New subsection (1A) provides that a Class 1A contribution is payable in respect of an amount of a payment or benefit received by an earner in connection with the termination of the earner’s employment (termination award). It further clarifies that the amount paid as a termination award, and on which the new Class 1A liability will arise, must count as employment income under section 403 of Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) and that the earner is chargeable to tax on the termination award under section 403 ITEPA 2003.
	New subsection (1B) prevents double charging by providing that Class 1A contributions payable under new subsection (1A) are not payable on an amount of earnings on which Class 1 contributions are also payable.
	New subsection (1C) clarifies that the employment from which the termination award arises must be the employed earner’s employment.
	Subsection (3) amends section 10(2) of the SSCBA 1992 so that the section’s existing purpose, clarifying who is liable to pay a Class 1A contribution, is restricted to Class 1A contributions other than that paid on a termination award.
	Subsection (4) inserts new subsection (3A) into section 10 of the SSCBA 1992. New subsection (3A) clarifies who is liable to pay a Class 1A contribution on termination awards under new subsection (1A). It is the person who would be liable to pay secondary Class 1 NICs if the amount of earnings were subject to Class 1.
	Subsection (5) amends section 10(4) of the SSCBA 1992 so that the section’s existing purpose, explaining how the amount of a Class 1A contribution is calculated, is restricted to Class 1A NICs other than that paid on a termination award.
	Subsection (6) inserts a new subsection (4A) into section 10 of the SSCBA 1992. New subsection (4A) clarifies how the amount of a Class 1A NICs payable on a termination award is calculated by using the Class 1A percentage.
	Subsection (7) amends section 10(5) of the SSCBA 1992 so that it applies to both existing subsection (4) and new subsection (4A).
	Subsection (8) amends subsection (9)(a) of section 10 of the SSCBA 1992 so that the Treasury may by regulations provide that Class 1A NICs are not to be payable in respect of general earnings or termination awards.
	Subsection (9) inserts new subsection (12) after subsection (11) of section 10 of the SSCBA 1992. This new subsection clarifies that a termination award means a payment or benefit received by an earner (or their spouse, civil partner, blood relative or dependent) in connection with the termination of the earner’s employment.
	Subsection (10) amends the heading of section 10 of the SSCBA 1992, removing reference to "benefits in kind etc." to reflect that the provisions of the section now apply more widely than just to Class 1A NICs due on benefits in kind.
	Subsection (11) amends section 162(5)(c) of the Social Security Administration Act 1992 to ensure that Class 1A NICs paid on termination awards are included in the calculation of the allocation of payments to the National Health Service.