Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Part 8 U.K. Former employees: deductions for liabilities

Deductions from total income U.K.

556 Deductible payments made outside the time limits allowed U.K.

(1) No deduction may be made under section 555 if the deductible payment is made—

(a) on or before the day on which the former employee ceased to hold the former employment, or

(b) after the end of the sixth tax year following the tax year in which the former employee ceased to hold the former employment.

(2) If subsection (1)(a) applies, see section 346 (deduction for employee liabilities).