Part 6Employment income: income which is not earnings or share-related
Chapter 3Payments and benefits on termination of employment etc.
Exceptions and reductions
409Exception for payments and benefits in respect of F1certain legal expenses etc and indemnity insurance
1
This Chapter does not apply to a payment or other benefit received by an individual if or to the extent that—
a
in the case of a cash benefit, it is provided for meeting the cost of a deductible amount, or
b
in the case of a non-cash benefit, it is or represents a benefit equivalent to the cost of paying a deductible amount.
2
For the purposes of this section “deductible amount” means an amount which meets conditions A to C.
3
Condition A is that the amount is paid by the individual F2or by the employer or former employer on behalf of the individual.
4
Condition B is that a deduction for the amount would have been allowed under section 346 from earnings from the relevant employment, if the individual still held the employment when the amount was paid.
5
Condition C is that the amount is paid at a time which falls within the run-off period.
6
In this section and section 410—
“relevant employment” means the employment mentioned in section 401(1);
“run-off period” means the period which—
- a
starts with the day on which the relevant employment terminated, and
- b
ends with the last day of the sixth tax year following the tax year in which the period started.
- a