Modifications etc. (not altering text)
C1Pt 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)
(1)This section applies where—
(a)qualifying counselling services are provided to a person (the employee) in connection with the termination of the holding by him of any office or employment, and
(b)the termination takes place on or after 16th March 1993.
(2)This section also applies where—
(a)subsection (1)(a) above applies, and
(b)the termination takes place before 16th March 1993 but relevant expenditure is incurred on or after that date.
(3)Relevant expenditure is expenditure incurred in—
(a)providing the qualifying counselling services to the employee,
(b)paying or reimbursing fees for the provision to the employee of the qualifying counselling services, or
(c)paying or reimbursing any allowable travelling expenses incurred in connection with the provision of the qualifying counselling services to the employee.
(4)No charge to tax under Schedule E shall arise in respect of—
(a)the provision of the qualifying counselling services to the employee,
(b)the payment or reimbursement of fees for the provision to the employee of the qualifying counselling services, or
(c)the payment or reimbursement of any allowable travelling expenses incurred in connection with the provision of the qualifying counselling services to the employee.
(5)Where this section applies by virtue of subsection (2) above, subsection (4) above shall apply only to the extent that the expenditure incurred in providing the services or paying or reimbursing the fees or expenses is incurred on or after 16th March 1993.
(6)Subsection (4) above shall apply whether or not the person who provides the services or pays or reimburses the fees or expenses is the person under whom the employee holds or held the office or employment mentioned in subsection (1) above.
(7)Subsections (8) to (10) below apply where any relevant expenditure is incurred by the person under whom the employee holds or held the office or employment mentioned in subsection (1) above (the employer).
(8)If and so far as the expenditure would not, apart from this subsection, be so deductible, it shall be deductible in computing for the purposes of Schedule D the [F2profits] of the trade, profession or vocation of the employer for the purposes of which the employee is or was employed.
(9)If the employer carries on a business and the expenses of management of the business are eligible for relief under section 75, subsection (8) above shall have effect as if for the words from “in computing” onwards there were substituted “as expenses of management for the purposes of section 75”.
(10)Where this section applies by virtue of subsection (2) above, subsections (8) and (9) above shall apply only to the extent that the expenditure is incurred on or after 16th March 1993.]
Textual Amendments
F1Ss. 589A, 589B inserted (27.7.1993) by Finance Act 1993 (c. 34), s. 108
F2Word in s. 589A(8) substituted (31.7.1998) by Finance Act 1998 (c. 36), s. 46(3)(a), Sch. 7 para. 1
Modifications etc. (not altering text)
C2S. 589A modified (with effect in accordance with s. 39(4)(5) of the modifying Act) by Finance Act 1995 (c. 4), Sch. 6 para 25 (the modification consisting of the insertion of a s. 589A(9A) for limited purposes, and that s. 589A(9A) was repealed (with effect in accordance with s. 38(2)(3) of the repealing Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(4), Note)