Part 8Former employees: deductions for liabilities
Deductions from total income
555Former employee entitled to deduction from total income
1
This Part applies if—
a
a former employee makes a deductible payment, or
b
a former employer makes a deductible payment on behalf of a former employee and the payment is treated—
i
as a relevant retirement benefit, or
ii
as post-employment earnings,
of the former employee.
2
A deduction of the amount of the deductible payment may be made when computing the former employee’s total income for the tax year in which the payment is made.
3
Subsection (2) applies only if the former employee makes a claim to the deduction.
4
The entitlement to a deduction under this section is subject to sections 556 and 557.
5
For the application of this Part in relation to former office-holders, see section 564.
6
For relief from capital gains tax where the amount of the deduction allowed under this section exceeds total income, see section 263ZA of TCGA 1992.