Income Tax Act 2007

440 (1) Amend section 555 (deduction for liabilities related to former employment) as follows. U.K.

(2) In subsection (2)—

(a) for “when computing the former employee's total income” substitute “ in calculating the former employee's net income ”, and

(b) at the end insert “ (see Step 2 of the calculation in section 23 of ITA 2007) ”.

(3) For subsection (6) substitute—

“(6) See section 263ZA of TCGA 1992 for relief from capital gains tax where the amount of the deduction allowed under this section exceeds the remaining total income (as defined in that section).”

(4) In the sidenote for “from total income” substitute “ in calculating net income ”.

(5) In the italic cross-heading before the section for “from total income” substitute “ in calculating net income ”.