Income Tax (Earnings and Pensions) Act 2003 section 412

Exception for payments and benefits provided by foreign governments etc.

Section 412 provides a narrow exception from the termination payments and benefits rules for certain payments and benefits connected with Commonwealth overseas territories and their governments.

• Pension benefits administered by a Commonwealth overseas territory government are exempt from the termination payments rules
• Compensation for loss of career, service interruption, or disturbance linked to constitutional changes in a Commonwealth overseas territory is also exempt
• The compensation exemption only applies to individuals who were employed in the public service of the territory before the constitutional change took place
• The meanings of "overseas territory", "government" of such a territory, and "employment in the public service" are as defined in section 615 of ICTA