PART XIII MISCELLANEOUS SPECIAL PROVISIONS
C1CHAPTER VI OTHER PROVISIONS
Miscellaneous
C2579 Statutory redundancy payments.
M11
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Where a redundancy payment or other employer’s payment is made F12by a company in respect of employment wholly in a F13trade or profession carried on by F14the company, and within the charge to tax, the amount of the redundancy payment or the corresponding amount of the other employer’s payment shall (if not otherwise so allowable) be allowable as a deduction in computing for the purposes of Schedule D the F7profits or losses of the F13trade or profession, but—
a
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F113
Where a redundancy payment or other employer’s payment is made F15by a company in respect of employment wholly in a business carried on by F16the company and—
a
expenses of management of the business are deductible under section 75, or
b
a deduction for expenses payable falls to be allowed in accordance with section 76 in computing profits of the business,
the amount of the redundancy payment, or the corresponding amount of the other employer’s payment, shall (to the extent that it would not otherwise fall to be so treated) be deductible under section 75 as expenses of management or as the case may be, be included at Step 1 in section 76(7).
3A
If in a case where subsection (3) above applies, the payment in question is for the purposes of section 75 or 76 referable to an accounting period beginning after discontinuance, it shall be treated as referable to the accounting period ending on the last day on which the business was carried on.
4
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Relief shall not be given under F9subsections (2) and (3) above, or otherwise, more than once in respect of any employer’s payment, and if the employee was being employed in such a way that different parts of his remuneration fell for F17corporation tax purposes to be treated in different ways—
a
the amount F3of the redundancy payment or the corresponding amount of the other employer’s payment shall be apportioned to the different capacities in which the employee was employed; and
6
Where the Minister pays a sum under F5section 166 of the Employment Rights Act 1996 or F6Article 201 of the Employment Rights (Northern Ireland) Order 1996 in respect of an employer’s payment this section shall apply as if—
a
that sum had been paid on account of that redundancy or other employer’s payment, and
Pt 13 Ch. 6: ss. 573, 575 and 576 transposed to Pt. 13 Ch. 5A (6.4.2007 with effect in accordance with s. 1034(1) of the affecting Act) by Income Tax Act 2007 (c. 3), Sch. 1 paras. 117(3), 119(7), 120(7) (with Sch. 2)