PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE
C1CHAPTER V COMPUTATIONAL PROVISIONS
F2Redundancy payments etc
S. 76ZF and cross-heading inserted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 36 (with Sch. 2 Pts. 1, 2)
F176ZIAdditional payments
1
This section applies if the employer's business, or part of it, ceases (permanently) to be carried on and the employer makes a payment to the employee in addition to—
a
the redundancy payment, or
b
if an approved contractual payment is made, the amount that would have been due if a redundancy payment had been payable.
2
If—
a
the additional payment would not otherwise be regarded as expenses payable for the purposes of section 76, but
b
that is only because the business, or the part of the business, has ceased to be carried on,
the additional payment is regarded as expenses payable for the purposes of section 76.
3
So far as the additional payment would, apart from this subsection, be regarded as expenses payable for the purposes of Step 5 in subsection (7) of section 76, it is not to be so regarded for the purposes of that subsection (or of subsection (2) above so far as relating to section 76).
4
The amount treated under this section as expenses payable for the purposes of section 76 is limited to 3 times the amount of—
a
the redundancy payment, or
b
if an approved contractual payment is made, the amount that would have been due if a redundancy payment had been payable.
5
If the payment is referable to an accounting period beginning after the business or the part of the business has ceased to be carried on, it is treated as referable to the last accounting period in which the business, or the part concerned, was carried on.
See—1979(C) s.122—election to take capital gain or loss into account when asset appropriated to stock in trade.1989 ss.67-74—employee share ownership trusts.Banking Act 1987 (c.22) s.66—contributions to the Deposit Protection Fund.