Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 405: Exception for certain payments exempted when received as earnings.
1763.This section provides that certain payments which would otherwise fall within this Chapter are not to be included. It derives from section 148(2A) of ICTA.
1764.Subsection (1) sets out the exemption which is to be taken to apply for this Chapter in the case of a termination of employment.
1765.Subsection (2) sets out the exemption which is to be taken to apply for this Chapter in the case of a change in the terms or remuneration of the employment.
1766.Not all the payments listed in section 148(2A) of ICTA are included in subsections (1) and (2) of this section. That is because there is no need to include those benefits that are now subject to “employment income” exemptions which operate to exempt them from all charges under the employment income Parts of this Act or those that are excluded by section 402(2) or (3) of this Act.