Part 8Former employees: deductions for liabilities

Deductions F1in calculating net income

Annotations:
Amendments (Textual)
F1

Words in s. 555 cross-heading substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 440(5) (with Sch. 2)

556Deductible payments made outside the time limits allowed

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).