Income Tax (Earnings and Pensions) Act 2003 section 404B

Power to vary threshold

Section 404B gives the Treasury the power to change the £30,000 tax-free threshold that applies to termination payments and benefits, subject to parliamentary approval if the threshold is being reduced.

• The Treasury can make regulations to change the £30,000 threshold amount referred to in sections 403 and 404
• The specific provisions that can be amended are subsections (1), (4) and (5) of both section 403 and section 404, along with the heading of section 404
• Any regulations made under this power may include transitional provisions to manage the changeover
• If the regulations would reduce the threshold below its current level, they must be laid before and approved by the House of Commons before they can take effect