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Version Superseded: 01/04/2009
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Income and Corporation Taxes Act 1988, Section 90 is up to date with all changes known to be in force on or before 14 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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[F1(1)Where a payment is made by way of addition to a redundancy payment or to the corresponding amount of any other employer’s payment and the additional payment would be—
(a)allowable as a deduction in computing for the purposes of Schedule D the profits or losses of a trade [F2or profession],
(b)deductible under section 75 as expenses of management of a business, or
(c)regarded as expenses payable for the purposes of section 76,
but for the permanent discontinuance of the trade, [F3profession or business], the additional payment shall, subject to subsection (2) below, be so allowable, deductible or regarded notwithstanding that discontinuance.
If the additional payment—
is made after discontinuance, or
is for the purposes of section 75 or 76 referable to an accounting period beginning after the discontinuance,
it shall be treated as made, or (as the case may be) as referable to the accounting period ending, on the last day on which the trade, [F3profession or business] was carried on.]
[F4(1A)To the extent that 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 shall not be so regarded for the purposes of that subsection (or of subsection (1) above so far as relating to that section).]
(2)Subsection (1) above applies to an additional payment only so far as it does not exceed three times the amount of the redundancy payment or of the corresponding amount of the other employer’s payment.
(3)In this section references to the permanent discontinuance of a trade, [F5profession or business] include references to any occasion on which it is treated as permanently discontinued by virtue of section F6. . . 337(1).
(4)In this section references to a redundancy payment or to the corresponding amount of an employer’s payment shall be construed as in sections 579 and 580.
Textual Amendments
F1S. 90(1) substituted (28.9.2004 with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 1(2), Sch. para. 10(2)
F2Words in s. 90(1)(a) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 66(2)(a) (with Sch. 2)
F3Words in s. 90(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 66(2)(b) (with Sch. 2)
F4S. 90(1A) inserted (28.9.2004 with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 1(2), Sch. para. 10(3)
F5Words in s. 90(3) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 66(3)(a) (with Sch. 2)
F6Words in s. 90(3) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 66(3)(b), Sch. 3 (with Sch. 2)
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