Part III Income Tax, Corporation Tax and Capital Gains Tax
Chapter I General
Miscellaneous
73 Consideration for certain restrictive undertakings.
F1(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
Notwithstanding anything in section 74 of the Taxes Act 1988, F2any payment which is treated as earnings of an employee by virtue of section 225 of the Income Tax (Earnings and Pensions) Act 2003 (payments for restrictive undertakings) , and which is paid or treated as paid by a F3company carrying on a trade, profession or vocation, may be deducted as an expense in computing the profits or gains of the trade, profession or vocation for the purposes of F4corporation tax .
F5(3)
Any payment which is treated as earnings of an employee by virtue of section 225 of the Income Tax (Earning and Pensions) Act 2003—
(a)
if paid or treated as paid by company with investment business, shall be treated for the purposes of section 75 of the Taxes Act 1988 as an expense of management to the extent that it otherwise would not be;
(b)
if paid or treated as paid by a company in relation to which section 76 of that Act applies, shall be treated as expenses payable falling to be brought into account at Step 1 in subsection (7) of that section to the extent that it otherwise would not be.
(4)
This section has effect in relation to sums paid or treated as paid in respect of the giving of, or the total or partial fulfilment of, undertakings given on or after 9th June 1988.