The new cap applies to the following exit payments:
Any payment on account of dismissal by reason of redundancy (although there are exceptions in respect of statutory redundancy entitlements).
Any payment to reduce or eliminate an actuarial reduction to a pension on early retirement or in respect of the cost to a pension scheme of such a reduction not being made.
Any payment pursuant to an award of compensation under the Acas arbitration scheme or a settlement or conciliation agreement (although compensation in some circumstances may be exempt).
Any severance payment or ex gratia payment.
Any payment in the form of shares or share options.
Any payment on voluntary exit.
Any payment in lieu of notice due under a contract of employment (although a payment that does not exceed one-quarter of the relevant person's salary is exempt.
Any payment to extinguish any liability to pay money under a fixed term contract.
Any other payment, whether under a contract of employment or otherwise, in consequence of termination of employment or loss of office.
The following are not exit payments:
Any payment in respect of death in service.
Any payment in respect of incapacity as a result of accident, injury or illness (including injury to feelings payments).
Payment under certain firefighters' pension scheme rules and regulations.
Certain service awards to members of the judiciary.
Any payment in respect of annual leave due under a contract of employment but not taken.
Any payment in compliance with an order of a court or tribunal.
Any payment in lieu of notice due under a contract of employment that does not exceed one-quarter of the relevant person's salary.